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How President Trump Renegotiating NAFTA Will Affect Your Wallet

28 January 2017
How President Trump Renegotiating NAFTA Will Affect Your Wallet

"The goal for all three countries was the integration of Mexico with the highly developed, high-wage economies of the United States and Canada", stated a Council on Foreign Relations report on January 24. Mexico provides a key pool of labour to make autoparts for manufacturers in the USA and Canada, he said.

Protecting those gains as Trump reopens NAFTA is clearly the intent of the letter.

Uncertainty over NAFTA's future has already had far-reaching effects on the Canadian economy, from the dollar to the energy sector - and, ultimately, to your personal finances.

It might also help lead the way for a more comprehensive deal with Trump regarding border security and immigration, Mexican officials think. After Trump's victory in November, Congress made no attempt to ratify the 12-nation tariff-slashing pact when President Barack Obama, the TPP's intellectual author, was still in office.

But others are not so keen on what they believe is stifling free trade. "Counter to the incoming Trump administration's goal of creating manufacturing jobs, the withdrawal from NAFTA or the implementation of punitive tariffs could result in the loss of 31,000 U.S.jobs", vehicle said.

Once the notice is provided by the United States, Canada and Mexico could still resume trading bilaterally.

But trade isn't a one-way street, and though Canada relies more heavily on foreign trade than the USA does, many parts of the US rely on Canada as well.

Next Tuesday he is due to meet President Donald Trump, who has vowed to build a southern border wall to keep out migrants from Latin America. He regularly criticised deals made with countries like China and Mexico, which both import more goods to the U.S. than the U.S. exports to them. However, the deal drew fire from left and right in the last US election and now appears dead.

He said Mexico would get closer to Brazil, Argentina and other Latin American countries. However, according to CNN, President Trump has reportedly begun the process of renegotiating NAFTA, which could allow the U.S.to place a tariff on Canadian goods regardless of whether they meet the Rules of Origin standards outlined in the original agreement.

Mexico's Foreign Ministry has said it also expects USA trade adviser Peter Navarro and Trump's chief of staff, Reince Priebus, to be involved in the talks. Throughout his campaign, he repeatedly called NAFTA "a disaster", and many expect it to be one of his first targets of his presidency.

Parliamentary groups in the Senate have endorsed the dialogue the Secretaries of Foreign Affairs and Economy, Luis Videgaray and Ildefonso Guajardo, respectively, are leading as of today in Washington with senior officials from the Trump administration.