Nafta, the North American Free Trade Agreement, is being renegotiated. The renegotiation was demanded by the US, which complained that it caused US jobs go to low-wager Mexico.
The US has now concluded a new agreement with Mexico. It has to be signed by the end of the month. Canada-US negotiations are continuing. On Tuesday, the US trade representative said that even after the deal with Mexico is signed, the negotiations with Canada can continue.
There are two main points of disagreement:
1. dispute resolution mechanism. In US opinion, disputes should be dealt with by domestic courts. Canada wants to keep it. Being much smaller, the dispute resolution mechanism provides some way of countering disagreements with the US.
2. Dairy protection in Canada. US wants greater access to Canadian dairy market.
Canada has repeatedly stated that it rather leaves NAFTA than accept a bad deal.
We will see how it ends
No comments:
Post a Comment