Britain Could Join NAFTA If Brexit Deal Fails

Kristopher Drake
October 13, 2017

"If we can't make a deal, it'll be terminated and that will be fine", Trump said, using his typical bare-knuckle approach to top level diplomacy.

When Canadian Prime Minister Justin Trudeau meets President Donald Trump on Wednesday, he will try to persuade the US leader to focus on Mexico as a source of potential problems at talks to update NAFTA. Trump left open the possibility that the U.S. would seek to establish bilateral deals with Canada and Mexico if talks were to break down. "I'm of the view that over the long term, because trade has been so beneficial for everyone, that we will get through periods of question".

Following his visit to Washington, Trudeau is due to travel to Mexico, where he will meet with President Enrique Pena Nieto.

Chief among the tough U.S. proposals is a "sunset" provision that would force renegotiation of the trade pact every five years - undermining long-term business plans.

"There's a path to be optimistic here and, you know, maybe he'll come around", Morneau said, an apparent reference to Trump.

But the officials, who asked not to be identified because the talks are confidential, said the US side formally proposed it late on Wednesday during the fourth of seven scheduled rounds to update the rules governing one of the world's biggest trade blocs.

Trump has maintained his threat to walk out on the fourth round of talks to update the North American Free Trade Agreement, even amid rising opposition at home to his hard-line stance.

Trade experts say the NAFTA talks are likely to stall in the face of aggressive US attempts to sharply increase content requirements for autos and auto parts. Both leaders are keen to see talks succeed. Reuters-London reports Britain could join a formal trade alliance with the United States, Canada and Mexico if the European Union refuses to finalize a post-Brexit trade deal by 2019.

"I highlighted to the president how we disagreed, vehemently, with Commerce's decision to bring in countervailing and anti-dumping duties against Bombardier", Trudeau told reporters following talks with US President Donald Trump. It's time after all of these years and we'll see what happens.

The proposals call for North American content, overall, to rise to 85 percent from the current 62.5 percent. American Express, AT&T, GM and Delta were listed on publicity material for an event hosted by the U.S. Chamber of Commerce in Mexico on Tuesday, where Donohue warned that several U.S. proposals in the NAFTA talks were "poison pills" that risked dooming the agreement. Under the U.S. proposal, America would require more to be made in the country and less sourced from other members of the block. "Any trade proposal that makes multinational corporations nervous is a good sign that it's moving in the right direction for workers". "But it is our responsibility as a government to prepare for every eventuality, and that is what we are doing". "We have always understood that draining the swamp would be controversial in Washington".

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