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Britain Could Join NAFTA If Brexit Deal Fails

13 October 2017
Britain Could Join NAFTA If Brexit Deal Fails

The newspaper said British ministers were looking at joining the North American Free Trade Agreement (NAFTA) as part of planning for the possibility of Britain leaving the European Union in March 2019 without a trade deal.

Trudeau told reporters in Washington DC that he agreed with the USA president that that the NAFTA trade deal needed to be revamped and that any new agreement needed to "give citizens opportunities to succeed". President Donald Trump has threatened recently to withdraw completely from the deal, which was enacted in 1994 to create a free-trade zone between the U.S., Mexico and Canada.

Crude has also failed to benefit from Trump's likely move to decertify the worldwide deal to curb Iran's nuclear program; a decision that could make it more hard for Iran to produce and sell its oil.

President Donald Trump has criticized NAFTA for luring US manufacturing jobs to low-wage Mexico and has vowed to quit the pact or revise it to reduce his country's $64 billion trade deficit with its southern neighbor.

Mexico appears to be preparing for the worst as the fourth round of talks on the North American Free Trade Agreement open in Washington DC.

Trudeau was heading to Mexico City after leaving Washington for talks with President Enrique Pena Nieto. "My optimism is because I know how good NAFTA has been for million of citizens of Canada, the United States and Mexico". Those "could doom the entire deal", Thomas Donohue, the Chamber's chief executive officer said Tuesday. "We have to protect our workers, and in all fairness, the prime minister wants to protect Canada and his people also". But Mexican leaders have also warned that talks must conclude early next year before their presidential election campaign gets underway.

However, a study released on Thursday by the Motor Equipment Manufacturers Association, which represents US auto parts makers, showed the higher content requirements would lead to the loss of up to 24,000 U.S.jobs, as some companies would forego NAFTA's tariff-free benefits and ship in more components from other countries.

People briefed on US proposals to be presented this week said Washington is seeking to sharply lift North American content threshold in vehicle manufacturing. Mexican Foreign Minister Luis Videgaray, speaking ahead of the latest round of talks, said terminating Nafta could harm US-Mexico relations and damage co-operation on issues like fighting drug-trafficking. "It makes sense to modernize it", said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce. It's time after all of these years and we'll see what happens.

But there is still some uncertainty whether Trump is deploying tough negotiating bluster or is seriously considering scuppering the agreement.

Americans", she said, and acknowledged that changes to the deal would "of course be opposed by entrenched Washington lobbyists and trade associations.