Just as we expected – just as it almost certainly had to work – The trade deal with Mexico has forced Canada – suddenly left out in the post-NAFTA cold – to hurriedly re-enter “renegotiation” trade talks with the United States as well.
From Julie Gordon and Sharay Angulo’s article at reuters.com:
Canada’s top trade negotiator praised Mexico’s trade concessions on autos and labor rights on Tuesday as she rejoined NAFTA talks, while U.S. lawmakers warned that a bilateral U.S.-Mexico trade deal would struggle to win approval in Congress.
Automotive executives and other sources also told Reuters on Tuesday that the bilateral U.S.-Mexico deal announced on Monday allows President Donald Trump to impose 25 percent tariffs on imports of Mexican-made passenger vehicles and auto parts above certain volumes.
If Trump proceeds with the tariffs now under consideration based on national security concerns, Mexican duty-free exports of cars and sport-utility vehicles to the United States would be capped at 2.4 million vehicles annually. Volumes above that level would be subject to tariffs, auto industry officials and other sources said.
Canadian Foreign Minister Chrystia Freeland said that Mexico’s “difficult” concessions to the United States on Monday would pave the way for productive talks this week as all three countries race toward a Friday deadline for a deal to modernize the 24-year-old North American Free Trade Agreement.
Don’t you love that quote about “difficult” concessions to the United States paving the way for productive talks?
Note to Foreign Minister Freeland: if you change “paving” to “caving”, you’ve got it right. And “caving” is what should have happened, since the current trade situation is so ridiculously tilted in Canada’s favor.
After the Trump administration renegotiated its trade agreements with Mexico – making them significantly more equitable for us – Canada had nowhere to go except the same place Mexico did: i.e. renegotiating more equitable terms.
This was so obvious that even Canadian Prime Minister Justin Trudeau understood it…which is why Ms. Freeland is now having these talks.
Another triumph for the the Trump administration that mainstream media will, based on over a year and a half’s experience, almost certainly minimize or ignore.
May they keep coming.