Mexico and Canada Reject US NAFTA Demands

US demands an end to Canada's supply management

Mexico's Economy Minister on Tuesday said the three countries renegotiating NAFTA were not at a point where they could see common ground needed to conclude the talks, adding the aim was get a deal that made all of North America stronger - not weaker.

Under the sunset clause, the agreement would expire every five years unless all three nations agree to sign on for five more. "Because of its complex supply chains that cross both borders, the auto industry would suffer the most, with autos accounting for almost 40% of exports to Canada and 22% of exports to Mexico".

Two sources have told The canadian Press that the request was dropped Sunday evening during negotiations for the new version of the free trade Agreement north american (NAFTA).

But uncertainty reigned at the end of the talks with a gloom dominating the negotiations with Mexico and Canada this time around after US trade officials proposed several provisions that both countries considered nonstarters.

Scott Miller, a senior advisor at the Center for Strategic and International Studies, said U.S. officials were advancing some positions - particular fresh content requirements for auto manufacturing - that were likely to be non-starters for United States industry and lawmakers.

The meeting will be terminated in fourth part of negotiations, USA trade representative Robert Lighthizer, Canadian Foreign Minister Christia Freeland and Mexican economy Minister Ildefonso Guajardo Villarreal.

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United States negotiators have presented demands that would boost the North American content for autos, cut Mexican and Canadian access to government procurement, introduce a clause that could kill the deal in five years and end a trade dispute settlement system that has deterred USA antidumping cases.

"Now I understand that after many years of one-sided benefits, their companies have become reliant on special preferences and not just comparative advantage".

Experts at the Sourcing Summit, an apparel industry conference in Manhattan, echoed retailers' concerns that the US could withdraw from Nafta or the deal could fall apart.

While getting business and labor on board might sound like an impossible task, "the day will come" that will prove it can be done, he said. The talks are now scheduled to resume in Mexcio City on November 17-21.

Negotiators had hoped to complete the agreement before the end of the year - a deadline that ahd already deemed almost impossible to meet - to avoid any interference with next year's elections in the United States and Mexico.

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