NCBA Official Hoping For Progress In Mexican Round Of NAFTA Talks
"Our concern is if you see in a worst-case scenario by this administration, to withdraw from NAFTA, that will immediately have some significant impacts on our ability to export products to Canada and maybe even more importantly to Mexico", he said in a conference call with journalists.
Year-on-year, the value of total USA trade with Canada was up 9.5% to $48.7bn as the value of freight carried by vessel increased by 61.1% due, in part, to an increase in the unit value and a 42.8% increase in the tonnage of mineral fuels traded.
Mexico made concessions to the U.S. sugar industry to reach a deal, eager to avoid a stand-off before the NAFTA talks kicked off. Negotiators from the three NAFTA countries are now in Mexico City for a seventh round of talks.
The three countries began a round of talks to renegotiate the North American Free Trade Agreement (NAFTA) in Mexico, that is due to end on March 5. The US administration contends that if US companies didn't have the recourse ISDS provides for an inappropriate action overseas, they would be "more likely to make that investment - not in Mexico - but in the United States", said Dooley.
When it comes to pork, one of Iowa's top industries, 40 percent of USA export volume went to Mexico and Canada previous year. Among other things, the Trump administration is gathering the companies' views on Canada's NAFTA proposals, one source said. "So we're not looking at a Plan B. That may be happening in some other circles but that's not where my emphasis as chair of Canada-U.S.is at".
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All the while, Canada will live under the cloud of uncertainty about its trade access to the USA market.
Canada will do better to accept an extra year or two of uncertainty than to accept the permanent curtailment of market access that the U.S.is now proposing. In 2016, Mexico accounted for 45% of total USA skim milk powder exports to all destinations, as well as 30% of cheese exports, 10% of butter exports and 8% of whey exports.
The analysis found that total economic contributions (direct, indirect and induced) created by dairy sales to Mexico show the true importance of these exports to the overall USA economy. The agricultural industry and our state's economy depends on NAFTA. He says they're focusing on not only NAFTA but also KORUS and any other bilateral pact that may come up. With more than 62 percent of US agricultural exports represented by these areas, including NAFTA, the stakes are high.
With record harvests and livestock production coming online, free, fair and open trade is key to US agriculture's success.
But if the Trump administration takes a hard line position in areas like investor-state dispute mechanisms and on a USA demand that NAFTA by renewed every five years by the three countries, a so-called sunset proposal, those could be "non-starters" with Canada and Mexico, he said.
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