Chrystia Freeland, Canada’s Foreign Minister and top trade negotiator, on Tuesday, appreciated Mexico’s trade concessions rendered on autos and labor rights. Canada’s involvement in the NAFTA talks happened when US President Donald Trump warned to levy heavy tariffs on Canada’s imports if not come along in the NAFTA agreement.
This US-Mexico deal will allow President Trump to levy 25 percent of tariffs on imports of Mexican-made passenger vehicles and auto parts above certain volumes, as informed by automotive executives and other sources.
Expectantly, Mexican duty-free exports of cars and sport-utility vehicles to the United States would on an annual basis be plugged upon around 2.4 million vehicles, masses above that level would be levied a tariff on.
Freeland described that Mexico’s “difficult” concessions to the US would lead to some productive talks as these three nations are running towards modernizing the NAFTA. After the meeting with US representative Robert Lighthizer, she said: “These concessions are really going to be important for workers in Canada and the United States.”
Commenting on Canda’s revised deal, Lighthizer said, “One of the main sticking points for Canada in the revised deal is the U.S. effort to dump the Chapter 19 dispute resolution mechanism that hinders the United States from pursuing anti-dumping and anti-subsidy cases.”
Mexico’s Foreign Minister Luis Videgaray, on a Mexican television, said “The three sides would work for a three-way deal. We are now going to devote long hours to the negotiation with Canada,” he said.
Drawing impact on Mexican Peso and Canadian Dollar, on Tuesday, US Dollar was able to weaken Peso.