USTR aims to reduce trade deficit in NAFTA negotiating

USTR aims to reduce trade deficit in NAFTA negotiating

USTR aims to reduce trade deficit in NAFTA negotiating

It envisions an agreement that "reduces the trade deficit" with Canada and Mexico, and aims to preserve "Buy America" provisions.

Talks on the two-decade deal between Mexico, the United States and Canada are to begin in August in a bid to address U.S. President Donald Trump's concerns that the existing agreement harms U.S. industry and jobs.

The summary explicitly states that a USA goal will be reducing the trade deficit with Mexico and China, but business groups and free-trade Republicans mostly breathed tentative sighs of relief.

Trade is a centerpiece of President Donald Trump's economic agenda, and the renegotiation of NAFTA has been a pillar of his promise to revive US manufacturing.

The negotiation objectives were released on July 17 by the Office of the United States Trade Representative (USTR).

The Mexican government said in a statement that the administration's NAFTA objectives will give greater clarity to the negotiations.

The outcome of those negotiations could significantly shift trade with Canada and Mexico that supports almost 14 million American jobs, according to the U.S. Chamber of Commerce.

Another objective on the list: an improvement in the USA trade balance and a reduction in trade deficits, another hobby horse of the president, who tends to see trade imbalance as a sign of American weakness.

By a year ago, the U.S. ran a $64bn trade deficit with Mexico and a almost $11bn gap with Canada. USTR sought public comments, received more than 12,000 responses, and heard directly from over 140 witnesses over three days of public hearings. "It did, however, result in further consolidation in the US beef industry and the potential for $1 billion in retaliatory tariffs from Canada and Mexico".

Other measures proposed by the administration to Trump, the abolition of chapter 19 could have an impact extremely important on the trade relations within NAFTA.

At home, it has received some 12,000 written submissions and consulted extensively with some 450 stakeholders, primarily management and labour in the industry sectors most dependent on maintaining an open border with the USA _ automotive, aerospace and food processing sectors among them. "They essentially look like tweaking around the edges, and much of it seems wholly adopted from the trade negotiating objectives from the TPP, which is something that the president himself said was a failed agreement and withdrew from".

Hinz-Foley Trejo said that even as Texas benefits from the economic effects of NAFTA, state lawmakers have targeted undocumented immigrants who came to Texas after unemployment in parts of Mexico soared because of NAFTA - by passing Senate Bill 4, a bill that cracks down on "sanctuary" cities and other jurisdictions that don't enforce federal immigration laws. "But in Arizona, and in southern Arizona, we've been able to grow our economy because of cross-border commerce".

Mexico says it would make sense to wrap up the talks by the end of this year, a goal Canadian officials say privately is impossible if the agreement is to be properly updated.

"A quarter of the country gets their produce coming in from Nogales", Grijalva said.

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