Canada foreign minister says NAFTA talks extension is good news

Spotlight: NAFTA parties to extend trade talks into Q1 2018 with

Canada foreign minister says NAFTA talks extension is good news (BBD., BA, DAL)

"We must understand that we all have limits", Guajardo said.

The Trudeau government is taking a measure of comfort in a new report by the U.S. Congress that casts doubt on one of Donald Trump's priorities for renegotiating the North American Free Trade Agreement, The Canadian Press has learned. Mexico will host the fifth round of talks in Mexico City from November 17-21. Alternate trade objectives are driving a wedge between the USA and Canada.

The looser treatment of foreign-exchange issues may frustrate those who have called for tougher language on currencies in trade deals, including US automakers and some American lawmakers.

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Lighthizer did not provide any details on what the United States has proposed on agriculture, but he did say at one point that agriculture is always a hard part of trade negotiations due to both economic and social issues. The U.S. dairy industry has urged Lighthizer to raise the issue of Canadian dairy policies that keep out U.S. products.

Freeland, for her part, said the Canada-U.S. trading relationship is "very well balanced and is mutually beneficial". It has come to our attention that the Computer & Communications Industry Association (CCIA) and the Internet Association have submitted comments recommending that the language of Section 230 of the Communications Decency Act (CDA), 47 U.S. Code§ 230, be added to a revised NAFTA.

"Everybody has to give up a little bit of candy", Lighthizer said, adding that if "a little bit of the sugar" is taken away, companies can make money in other ways.

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Nafta negotiators are working on a side deal for the U.S., Canada and Mexico to make a non-binding pledge to avoid devaluing their currencies for competitive purposes, according to three people familiar with the matter.

"Economists generally argue that it is not feasible to use trade agreement provisions as a tool to decrease the deficit because trade imbalances are determined by underlying macroeconomic fundamentals", says the 37-page report.

The Brookings Institution's Dany Bahar said trade deficits are not the cause of job losses, and called the USA focus misplaced. "Furthermore, including Section 230 in NAFTA in its current form would export a destructive legal battle that will harm sex trafficking victims advertised in Mexico and Canada".

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In a recent note to clients, Edward Glossop, Latin America economist at Capital Economics, said the currency could tumble to at least 22 per dollar, but probably further, to about 22.50 or 23 per dollar if the trade deal were to collapse. US grain and meat producers have also said they fear that the produce seasonality proposal could endanger USA exports to Mexico, and the United Fresh Produce Association has said it does not support the seasonality proposal even though its Florida members and some others want the situation addressed. The influx of imports swelled America's trade deficit with Mexico, which came to $62 billion previous year.

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