On Monday the President announced that the North American Free Trade Agreement (NAFTA) will be updated. The administration has already worked out a deal between the U.S. and Mexico. Now the U.S. has until the Friday deadline to work out a deal with Canada to revamp NAFTA.
The agreement with Mexico could be a sigh of relief for many small and medium sized businesses, and could put some ease on the decision to impose tariffs that the President put into effect in March, according to the White House.
The White House says the revisions include:
- New “rules of origin” requirements to incentivize billions a year in vehicle and automobile parts production in the United States, supporting high-wage jobs.
- Stronger, fully enforceable labor standards of any trade agreement.
- Strong and effective intellectual property protections.
- The strongest disciplines on digital trade of any international agreement.
- The most robust transparency obligations of any United States trade agreement.
However, progress so far has been strictly between the U.S. and Mexico. The Window and Door Manufacturers Association (WDMA) released a statement expressing their concerns that Canada had not yet been included in this Agreement.
“WDMA is optimistic that the Trump Administration has made progress with Mexico on a trade deal to replace NAFTA, however, Canada must be included in any agreement that replaces it,” says Window and Door Manufacturers Association (WDMA) CEO Michael O’Brien. “Canada is arguably the United States’ most important trading partner and WDMA urges the Administration to work with Canada in the coming weeks to ensure that North American trade agreements are trilateral.”
A revision of NAFTA between the U.S. and Canada could potentially relieve the retaliatory tariffs imposed by Canada.
On Wednesday, the President signed a proclamation allowing steel and aluminum product exclusions for quota countries, according to a statement from the U.S. Commerce Department. South Korea, Argentina and Brazil will receive relief on steel while Argentina receives relief on aluminum.