Pittsburgh Post-Gazette

Negotiator­s say they can’t rewrite NAFTA this year

Fourth talk to be held next month

- By Paul Wiseman

NAFTA ripped down most trade barriers between the U.S., Canada and Mexico. Trade surged within the NAFTA bloc, benefiting American farmers who export corn and other products. WASHINGTON — But many U.S. manufactur­ers Talks to rewrite the North moved production American Free Trade south of the border to take Agreement have stalled advantage of Mexico’s low over tough American demands, labor costs, then shipped dashing hopes that goods back to the United a deal can be reached this States. The influx of imports year. swelled America’s

A fourth round of negotiatio­ns trade deficit with Mexico, between the U.S., which came to $62 billion Mexico and Canada ended last year. ( The United in mutual exasperati­on States logged an $8 billion Tuesday. Talks will continue trade surplus with Canada next month in Mexico in 2016). City and will spill over To cut the trade deficit into next year. with Mexico, the United

The negotiator­s had States is demanding that originally hoped to reach more auto production be an agreement this year — made in America before before Mexico’s presidenti­al qualifying for NAFTA benefits. election and U.S. midterms turn up the political But companies have pressure in 2018. built complicate­d supply

President Donald chains that straddle Trump, who called NAFTA borders, taking advantage NAFTA a job-killing “disaster” of each country’s on the campaign strengths — such as cheap trail, has threatened to labor in Mexico and skilled withdraw from the 23-yearold workers and proximity to pact if he can’t get what customers in the United he wants. States and Canada. Changing

Canada and Mexico are the rules, they say, balking at America’s demand would disrupt their operations. that a revamped deal do something to reduce “These proposed rules America’s trade deficits. would increase the cost of

“We have seen no indication manufactur­ing and raise that our partners prices for consumers,” said are willing to make any Ann Wilson, senior vice changes that will result in president for government a rebalancin­g and a reduction affairs at the Motor & in these huge trade Equipment Manufactur­ers deficits,” U.S. Trade Rep. Associatio­n, which represents Robert Lighthizer said. auto suppliers.

Canadian Foreign Minister “It would just make Chrystia Freeland countered North America less competitiv­e, that America’s “unconventi­onal” and it would impose proposals an indirect barrier to would“turn back the clock” trade,” said trade lawyer and warned against a “winnerMigu­el Noyola, a principalt­ake-allmindset.” at Baker & McKenzie LLP. Associated Press

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