NAFTA out the Door, and Trump Looking to Score

Dawson Barnard

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As of Monday, August 27, President Trump has made new strides on his campaign promise to renegotiate the 1994 North American Free Trade Agreement (NAFTA) by meeting with the current Mexican president.  President Trump believes that America’s current trade agreements have been a major cause of the country’s trade deficits.

Both the president of the United States and president of Mexico are hoping to include Canada in the updated trade agreement.  Through spokesman Adam Austen, Canadian Foreign Minister Chrystia Freeland said, “We will only sign a new NAFTA that is good for Canada and good for the [Canadian] middle class. Canada’s signature is required.”  Currently, discussions with Canada have not started, but multiple separate deals are also being considered. For changes to take effect, Congress would have to approve a proposed trade deal.

The new trade deal seems to focus on the importing and exporting of automotive parts and vehicles.  Under the new deal, 75% of automotive parts would be required to be produced in the United States and Mexico. Currently 62.5% are manufactured in Mexico, the United States, and Canada.  The deal would also require that the average wage of automotive factory workers would be at least $16 an hour on average. The agreement would last for 16 years and be reviewed every six years.  Preventing a trade war and benefiting the United States, Mexico, and Canada seems to be the negotiations end goal.

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