As the heat of the tariffs’ war subsides, the NAFTA talks are set to continue this week between the three countries after two months of subdued negotiations. The talks were stalled over the last month as Mexico went into its presidential election, and now the governments are getting back together to discuss key issues regarding the auto industry.
This talk is also expected to highlight the aluminium and steel tariffs that the U.S. levied on its neighbors, which triggered a retaliation from those countries. Mexico and Canada have been hard hit by the tariffs as a huge part of their auto exports end up the U.S.
The series of talks is anticipated to clear up the disgruntlement over the existing NAFTA regulations and the U.S. officials have hinted at finalizing a deal in 45 days. “The NAFTA negotiations appear to be repeating the same pattern that they have followed since the beginning: The United States sets unrealistic deadlines and tries to pressure their counterparts into a deal,’’ said former Canadian diplomat Eric Miller. “At present, the objective is to push Mexico to embrace an auto deal all while threatening to pursue bilateral negotiations with each country.”
Did you know?
American Trucking Associations' advanced seasonally adjusted (SA) For-Hire Truck Tonnage Index fell 0.4% in June after rising 0.4% in May. In June, the index equaled 113, down from 113.4 in May. ATA revised the May increase from the originally reported 0.7% to 0.4%.
“Cargo theft doesn't take only one form, and neither should theft prevention. I can't stress enough the importance of taking a layered approach to protecting loads. Remember, processes and procedures are free, and they are often the best methods to prevent theft.”
- Scott Cornell, crime and theft specialist for Travelers Insurance
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The Trump administration has announced $12 billion in emergency aid to farmers hit by tariffs, which are essentially retaliatory to the ones introduced by the U.S. over different products. The aid is expected to come in through a direct assistance program that would help with purchasing food and distributing it.
The aid is welcome as the ag industry is bearing the weight of low global prices for commodities like wheat, and retaliatory tariffs on products like soybeans and meat. Right now, countries from South America and South-East Asia are leveraging the trade fallout between the U.S. and China to improve their export margins.
Nonetheless, the U.S. government is steadfast in its opinion that there would negligible long-term impact on ag trade due to the incoming tariffs. It maintained that the U.S. stands to gain a lot economically based on the tariffs it has levied on exports, as the country has long since remained a trade deficit country - especially with the likes of China and Mexico.
Hammer down everyone!
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