The Globe and Mail reports in its Monday, Sept. 11, edition that the U.S. plan to shake
down Canada and Mexico in an effort to get a better North American free-trade agreement will fail, because no agreement is better than a bad agreement, particularly
with World Trade
Organization rules backstopping
NAFTA. The Globe's guest columnist Andrei Sulzenko writes that for example, the U.S. demand
for American content in NAFTA-made
cars is laughable because
automakers would be better
off paying the alternative, much
more flexible, WTO "bound" tariff
of 2.5 per cent into the U.S.
market, with potentially zero
NAFTA content.
Further, the self-inflicted downside
for the U.S. of this
kind of "my way or the highway"
gambit is that it further raises the
bar with President Donald Trump's electoral
base when it comes to ultimately
proclaiming success.
If anything, Mr. Sulzenko says the U.S.
should be dialling down the rhetoric
and preparing the public for
a modernized agreement with
enough political "gets" for all
sides to declare victory. Indeed,
based on public reports, it
appears that there is a deal on
the table if negotiators and their
political masters have the wit to
see it through.
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