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Posts Tagged ‘trade talks’

Trump, White House Backtrack on Claims of China Car Tariff Deal

“White House officials are contorting themselves into pretzels” to not say the president lied.

by Paul A. Eisenstein on Dec.04, 2018

President Trump is revealing that China's plan to cut tariffs wasn't actually plan, but a starting point for negotiations.

Just days after President Donald Trump emerged from a 2-1/2 hour dinner with China’s Xi Jinping claiming to have an “incredible” trade deal that would, among other things, roll back automotive tariffs, it appears that little to nothing concrete was resolved between the two leaders.

That leaves the auto industry in limbo as manufacturers on both sides of the Pacific try to figure out precisely what to do now, especially when it comes to bilateral automotive exports. Several manufacturers, notably including BMW and Volvo, have been hinting that if the trade war continues they may have to transfer some of their U.S.-based production to plants in China.

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Following the meeting with Xi at the end of the G-20 conference in Argentina last Sunday, Trump tweeted, “China has agreed to reduce and remove tariffs on cars coming into China from the U.S. Currently the tariff is 40%.” But he and others in the White House have been forced to backtrack, Trump’s National Economic Council advisor Larry Kudlow telling Fox News a deal “hasn’t been signed and sealed and delivered yet.” (more…)

New Vehicle Costs Expected to Rise Under New NAFTA Deal

Canada in talks with the U.S.

by Michael Strong on Aug.28, 2018

Mexico's Ildefonso Guajardo and U.S. Trade Representative Robert Lighthizer after talks.

As U.S. and Mexican trade officials wait for Canada to get on board with the new deal expected to be the replacement or update to NAFTA, the existing agreement reveals that it may not be a great pact for American consumers.

New vehicle prices will rise, along with demand for used cars, experts say because the cost for producing the vehicles and components in Mexico is going to increase under the terms of the deal right now.

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“The new agreement will push production costs higher on Mexican products — parts and vehicles — which, eventually, will be paid by American consumers,” Michelle Krebs, executive analyst at Autotrader, told the Detroit Free Press. (more…)

Business Groups Plead with Governments for New NAFTA

Chambers of commerce implore all sides to get deal done.

by Joseph Szczesny on Jan.24, 2018

U.S. Trade Representative Robert Lighthizer is ready for the next round of NAFTA talks in Montreal.

Business groups from Canada, Mexican and the U.S stepped up this week to urge negotiators from all three countries to find common ground to maintain and improve the North American Free Trade Agreement, or NAFTA, even as Trump Administration policies take on a more protectionist hue.

The sixth round of negotiations to update NAFTA is beginning in Montreal the chambers of commerce from all three countries stressed that free trade keeps them prosperous and creating jobs.

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We “urge our respective governments to come to an agreement to an updated NAFTA, and to maintain it for the future economic success of all three nations,” the leaders of 25 metropolitan chambers of commerce said in a statement. (more…)

NAFTA Talks Bog Down as Sides Take Recess

Canadians suggest U.S. demands undoing 23 years of progress.

by Joseph Szczesny on Oct.18, 2017

Mexican Secretary of the Economy Ildefonso Guajardo said that each country in the NAFTA talks has its "limits" and warned against rash decisions.

Top trade officials from the U.S., Canada and Mexico squabbled openly as they wrapped up the most recent round of negotiations aimed at changing the North American Free Trade Agreement, which has become a key prop for auto production in the U.S.

Representatives were openly critical of each other’s positions, acknowledging in a joint statement that “new proposals had created significant conceptual gaps” between them.

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Talks are expected to resume in Mexico Nov. 17, but are not expected to be completed until sometime next year, which means they would bump into the Mexican presidential campaign. Observers have warned pushing the talks into the next year could lead to serious political problems, particularly in Mexico. (more…)