Money Two NAFTA negotiations but one is running off the rails

19:37  11 october  2017
19:37  11 october  2017 Source:   Toronto Star

U.S. Adds Wine to Its Growing List of Trade Disputes With Canada

  U.S. Adds Wine to Its Growing List of Trade Disputes With Canada Donald Trump is pairing a fresh trade challenge over Canadian wine with his administration’s ongoing dairy dispute. The U.S. filed a second complaint Monday with the World Trade Organization against Canada over British Columbia’s restrictions on wine sales. The U.S. alleges the province’s regulations discriminate against imports by only allowing B.C. wine to be sold on regular grocery store shelves and has requested WTO consultations on the matter, the trade organization said in a statement.The wine dispute -- initiated in the last days of the previous administration -- comes as negotiators from the U.S.

The North American Free Trade Agreement house of cards has been carefully constructed over 23 years to create a tolerable balance of liberalization and protectionism. Knocking out entire sections affects the whole system in predictable and unpredictable ways.

Play Off The Rails - Navigate your handcar safely. You need to install updated version of Adobe Flash Player to play Off The Rails .

Editor’s note: The opinions in this article are the author’s, as published by our content partner, and do not represent the views of MSN or Microsoft.

Popular Searches

Chevron Corp

CVX

PM to visit Washington, Mexico next week

  PM to visit Washington, Mexico next week PM to visit Washington, Mexico next weekThe Prime Minister's Office says he will be in Washington on Tuesday and Wednesday, going on to Mexico on Thursday.

blog 'marymyers.blogdetik.com' is not exists.

blog 'candaceedwards.blogdetik.com' is not exists.

119.39
+0.52
+0.44%
Central Maine Power Co

CTPPO

110.50
-9.50
-7.92%
Energica Motor Co SpA

EMC

=
3.08
0.00
0.00%
Boeing Co

BA

260.92
+0.06
+0.02%

In trade negotiations, the sum of polar opposite views does not always yield a happy medium — especially when one side refuses to move and the other side won’t accept a deal worse than the status quo. This is the situation being reported by observers of the third round of NAFTA 2.0 negotiations.

From left to right, Mexico's Secretary of Economy Ildefonso Guajardo Villarreal, Canada's Minister of Foreign Affairs Chrystia Freeland, and United States Trade Representative Robert E. Lighthizer gather for a trilateral meeting at Global Affairs on the final day of the third round of the NAFTA renegotiations in Ottawa on Sept. 27.© LARS HAGBERG From left to right, Mexico's Secretary of Economy Ildefonso Guajardo Villarreal, Canada's Minister of Foreign Affairs Chrystia Freeland, and United States Trade Representative Robert E. Lighthizer gather for a trilateral meeting at Global Affairs on the final day of the third round of the NAFTA renegotiations in Ottawa on Sept. 27.

The negotiations have split into two separate tracks: one that is focused on modernizing and improving areas common interest, and one that is characterized by differences so irreconcilable that they threaten to derail the negotiations.

U.S. to present dairy demands at next round of NAFTA talks

  U.S. to present dairy demands at next round of NAFTA talks The U.S. secretary of agriculture says American negotiators will be presenting their dairy demands at the next round of NAFTA talks. The U.S. will be looking for increased access to Canada's dairy and poultry markets, according to U.S. Agriculture Secretary Sonny Perdue.

The launching of the North American Free Trade Agreement ( NAFTA ) negotiations on During the first two rounds of negotiations , the United States did not table any proposal on this subject. In 1992, Ross Perot ran his campaign as an independent claiming that NAFTA would create a “giant

blog 'brandonadams.blogdetik.com' is not exists.

The modernization track is streamlining customs clearances, digital modernization, regulatory alignment, and facilitating trade for small and medium-sized enterprises. Much of the easy consensus is the product of Trans Pacific Partnership text that has already been approved by the three parties.

Ironically, these relatively non-contentious issues could deliver the biggest competitiveness gains to the North American economy. Border facilitation, e-commerce and regulatory alignment not only reduce transaction costs across the board, they make it easier for small traders to effectively compete in the market.

However, factions that seek to dismantle the NAFTA are focused on advancing instruments of protectionism and turning back the clock to an era where might made right, and short term political gains were more important than investor stability, manufacturing efficiency, and regional comparative advantage.

Trudeau, Harper to cross paths in Washington

  Trudeau, Harper to cross paths in Washington Trudeau, Harper to cross paths in WashingtonOld political nemeses Justin Trudeau and Stephen Harper might literally cross paths. Harper is scheduled to attend a panel discussion on trade Wednesday afternoon, just as Trudeau is a few blocks away at the White House, discussing thorny trade issues with President Donald Trump.

blog 'jefflowery.blogdetik.com' is not exists.

blog 'robertovivids.blogdetik.com' is not exists.

Some of the most problematic issues are:

  • The proposed NAFTA sunset clause will dissolve the agreement after four years if U.S. expectations to reduce the trade deficit are not met. This will create terrible conditions for investors and producers whose livelihoods require predictability for decision making.
  • Dismantling investor protections against expropriation by a foreign government and eliminating the right of appeal against dumping claims similarly destabilizes the North American economy.
  • The U.S. proposal on government procurement offers a deal much worse than the current NAFTA or WTO arrangements. Canada will not agree to this and Ontario Premier Wynne may be forced to make good on her threat to impose a Buy Ontario rule to block U.S. suppliers from Ontario government contracts.
  • While there is room to update and improve these hot-button issues, U.S. negotiators are positioning their offers as take-it-or-leave-it. If so, Canada and Mexico may have no choice but to leave the negotiations, opening up the possibility that President Trump will launch formal withdrawal procedures. If this occurs, officials in Canada and Mexico will work with U.S. allies on strategies to block or delay a full U.S. withdrawal from the agreement.

In addition to the challenge of delivering a presidential trade agenda that promises to leave the NAFTA shaken and stirred, United States Trade Representative (USTR) is coping with new Congressional trade promotion authority measures. These are intended to create greater transparency and encourage interagency consensus and buy-in from legislators, but instead the process is adding sand to the gears.

Trudeau talks gender equality (and a little about Trump) at Washington summit

  Trudeau talks gender equality (and a little about Trump) at Washington summit Prime Minister Justin Trudeau talked politely about U.S. President Donald Trump and talked up gender equality at the first event of his second official trip to Trump’s Washington. Interviewed onstage Tuesday night at the Fortune Most Powerful Women Summit, Trudeau stuck to his usual script for discussing the president he will meet with on Wednesday: avoid controversy, emphasize common ground.

blog 'averykushmaul.blogdetik.com' is not exists.

" We ' re running very quickly somewhere." Canadian government officials insist the talks are going well and it's premature to conclude they're running off the rails . Watch: Minister discusses latest round of NAFTA talks. But trade experts and stakeholders who've been following the negotiations closely say

In theory, having proposed text vetted by responsible agencies and legislators seems like a very good idea. The reality, however, is that with only a week or two between negotiating rounds, U.S. personnel have not been able to get text and revisions cleared fast enough.

A predictable side-effect of the U.S. get-tough agenda is that new actions to protect one sector are likely to provoke retaliation and/or negatively affect market conditions for other U.S. sectors.

Thus, the proposal for new safeguards to protect Florida tomatoes from losing market share when Mexican tomatoes come in season (and are priced lower) could trigger retaliatory action by Canada and Mexico against Washington state growers during apple and pear season.

The NAFTA house of cards has been carefully constructed over 23 years to create a tolerable balance of liberalization and protectionism. Knocking out entire sections affects the whole system in predictable and unpredictable ways.

Make no mistake, Canada’s negotiators are not motivated by altruistic intent and many of their positions make little economic sense. Dairy protectionism remains a national religion and a web of nontariff barriers limits opportunities for U.S. beer, wine and grains (not to mention investment in telecommunications, financial services, and cultural industries).

But the basic principle of trade agreements, enshrined in the 1948 GATT, is to lock down a baseline of liberalization and to gradually whittle down the politically sensitive or difficult issues over time.

This approach reins in the worst excesses of governments trying to intervene in markets and lets business do business. A return to aggressive intervention pits one sector against another and leaves everyone worse off.

Laura Dawson is the director of the Canada Institute at the Wilson Center in Washington D.C.

How Trump is about to make the ‘worst deal ever’ even worse .
How Trump is about to make the ‘worst deal ever’ even worseThe fourth round of negotiations to revise the agreement wraps up Oct. 17, but many people close to the talks have expressed doubts that they will succeed.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!