Donald Trump’s ‘outrageous’ demands put NAFTA negotiations at risk of collapse, experts say.
Donald Trump, the President of United States Of America, and his administration have put some unacceptable or outrageous demands on the negotiation table of North American Free Trade Agreement (NAFTA). These demands have put the whole negotiation at the risk of collapse as observed and reported by the experts and big business companies.
NAFTA is the contract between U.S, Canada and Mexico for duty free trade which was initially signed in 1993. Canadian and Mexican negotiators joined Trump’s team near Washington on Wednesday, 11thOctober for the critical fourth round of negotiations and on October 17th they marked the end of the fourth round of negotiations. Trump’s administrations’ demands were continuously sabotaging the talks as U.S negotiators didn’t want to move from their demands and the other group was not ready to accept anything less than their status quo.
Some believe that the idea of renegotiating the NAFTA agreement is a significant idea as there have been some new and important development in the world since 1993 but to think about cancelling the agreement or to pull out of it, is not brilliant thinking according to its advocates. Through NAFTA Canada, Mexico and U.S’ have become even bigger trading partners.
NAFTA has had a significant effect on the service sector of the U.S. economy. NAFTA eliminates barriers from trade of services and thus has contributed in such massive growth in service sector that it has outgrown the growth in the manufacturing sector. This has also resulted in the employment of many hundreds of people. Financial services accounts for more than 7 percent of United States of America’s economy i.e. it is a 1.4 trillion industry. That’s like two times greater than the automobile industry. NAFTA has also been a treat for other service-sector industries, too, ranging from engineering to product design.
The complaints or problems that Trump has had with NAFTA is even considered to be outdated and unimportant by some. For instance, the Trump’s administration wants to increase the required percentage of car parts built ofNorth American–origin, for the cars that are being built in NAFTA zone. This is because they are suspicious and worried that the Koreans are providing motor builders with low cost electronic components, which you know is never good according to some politicians and businessmen. NAFTA has a dispute-resolving panel which is made just for these kinds of development issues but the United States is upset that it does not always get its way.
Some republicans even consider that Trump’s recklessness and big mouth might just cost the world, “World War III”. Freeland said, “I think that this is probably the most uncertain moment in international relations since the end of the Second World War.” So the trump should just forget his ignorance and accept the great deal that is the NAFTA agreement.