Trump warns it's 'possible' the United States will drop out of Nafta

Trump warns it's 'possible' the United States will drop out of Nafta

Trump warns it's 'possible' the United States will drop out of Nafta

On the U.S. side the event was co-chaired by Fedex Freight's CEO Michael Ducker and U.S. Chamber of Commerce President Thomas Donohue.

"Let me be forceful and direct", Tom Donohue, president of the US Chamber of Commerce, said earlier this week.

US negotiators on October 12 presented a proposal for a so-called "sunset clause" that would see the North American Free Trade Agreement expire after five years unless the parties can agree to extend it, according to two people familiar with the talks. All the while, the president has continued threatening to withdraw the United States from the trade agreement.

"Some of us in Mexico think that on several occasions our Canadian friends have come close to throwing us under the bus", Arturo Sarukhan, the former Mexican ambassador to the USA, said at a NAFTA-related event Wednesday in D.C. The countries have agreed to increased "procedural fairness in competition law enforcement", his office said in a statement.

US President Donald Trump has suggested the US, Mexico and Canada might not come to an agreement on the renegotiation of a more than 20-year-old North American trade deal as he held talks with Canadian Prime Minister Justin Trudeau at the White House. "My optimism is because I know how good NAFTA has been for million of citizens of Canada, the United States and Mexico".

Britain is now negotiating the terms of its divorce from the European Union though Prime Minister Theresa May is pushing to move onto discussions about a major free trade deal with the world's biggest trading bloc.

United States proposals include limiting the number of federal government contracts that Mexican and Canadian companies can win, a provision that would cause the deal to automatically expire in five years unless all three countries vote to renew, and changes in how much of a product needs to be made in North America to come under Nafta protections. Mexico could leave NAFTA and have the strength to move on without any serious long-term structural damage to the economy, he said.

The U.S.is expected to propose substantially raising the regional requirement, from 62.5 percent now, and potentially add a U.S. -specific content requirement.

The hard issue of rules of origin will be addressed mostly at the end of the current talks, according to a schedule obtained by Reuters.

The two countries share the longest, secure border in the world, over which approximately 400,000 people and more than $2 billion worth of goods and services cross daily.

Some trade observers said it is hard to see how negotiators could reach an agreement given US demands that many see as nonstarters. "So we are your biggest customer", Trudeau told members of the U.S. House of Representatives Ways and Means Committee on Wednesday. The U.S. auto parts industry employs about 870,000 workers.

Meanwhile, a veteran Mexican diplomat has expressed fears about the possibility that NAFTA could be ditched in favour of bilateral agreements, an issue raised by Trump as well.

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