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| U.S. and Mexico to Release Text of Nafta Without Canada | U.S. and Mexico to Release Text of Nafta Without Canada |
| (about 3 hours later) | |
| WASHINGTON — The United States and Mexico are expected to release text of a bipartisan trade deal that the two countries reached last month, setting up a potential showdown with Canada and Congress over the future of the North American Free Trade Agreement. | WASHINGTON — The United States and Mexico are expected to release text of a bipartisan trade deal that the two countries reached last month, setting up a potential showdown with Canada and Congress over the future of the North American Free Trade Agreement. |
| The Mexican government is planning to publish the agreement by 7 p.m. on Friday, according to a Mexican government official, and the United States trade representative is also expected to release the text. The bilateral agreement, which does not include Canada, would replace the 25-year old Nafta pact, which has stitched together the economies of Mexico, Canada and the United States. | The Mexican government is planning to publish the agreement by 7 p.m. on Friday, according to a Mexican government official, and the United States trade representative is also expected to release the text. The bilateral agreement, which does not include Canada, would replace the 25-year old Nafta pact, which has stitched together the economies of Mexico, Canada and the United States. |
| President Trump and Mexican President Enrique Peña Nieto are expected to sign the pact on Nov. 30 but the agreement faces an uncertain fate without Canada, which has been unable to resolve several big disagreements with the United States. Lawmakers have urged the White House to continue working to get Canada into a pact that has become critical to businesses, like automakers and farmers, across North America. | President Trump and Mexican President Enrique Peña Nieto are expected to sign the pact on Nov. 30 but the agreement faces an uncertain fate without Canada, which has been unable to resolve several big disagreements with the United States. Lawmakers have urged the White House to continue working to get Canada into a pact that has become critical to businesses, like automakers and farmers, across North America. |
| After trilateral talks between the United States, Mexico and Canada stalled earlier this year, the Trump administration began working directly with Mexico to reach a bilateral agreement before the new Mexican government takes office on Dec. 1. Mr. Trump announced the deal in August and said Canada, while not included in the agreement, could still join “if it is willing.” | After trilateral talks between the United States, Mexico and Canada stalled earlier this year, the Trump administration began working directly with Mexico to reach a bilateral agreement before the new Mexican government takes office on Dec. 1. Mr. Trump announced the deal in August and said Canada, while not included in the agreement, could still join “if it is willing.” |
| But Canada and the United States have so far failed to reach agreement on several key issues and there is increasing rancor between Mr. Trump and Justin Trudeau, Canada’s prime minister. | But Canada and the United States have so far failed to reach agreement on several key issues and there is increasing rancor between Mr. Trump and Justin Trudeau, Canada’s prime minister. |
| Many of the most significant changes to Nafta involve the rules governing car manufacturing, which are being altered in an effort to bring more car production back to the United States from Mexico. | Many of the most significant changes to Nafta involve the rules governing car manufacturing, which are being altered in an effort to bring more car production back to the United States from Mexico. |
| The preliminary agreement unveiled in August required that at least 75 percent of a car’s value be produced in North America in order for a company to import it into the United States duty free. That is up from 62.5 percent under the original Nafta. | The preliminary agreement unveiled in August required that at least 75 percent of a car’s value be produced in North America in order for a company to import it into the United States duty free. That is up from 62.5 percent under the original Nafta. |
| Carmakers also would be required to use more local steel, aluminum, glass and other parts. And 40 to 45 percent of vehicles would have to be made by workers earning at least $16 an hour. That increase is intended to boost jobs in the United States and Canada, where wages are higher. | Carmakers also would be required to use more local steel, aluminum, glass and other parts. And 40 to 45 percent of vehicles would have to be made by workers earning at least $16 an hour. That increase is intended to boost jobs in the United States and Canada, where wages are higher. |
| Those changes are generally acceptable to Canada, but it remains resistant to demands that the United States has made over broadening access to the Canadian dairy market and to abandoning an independent tariff dispute settlement system. While Mexico has agreed to put off discussions over removing tariffs that Mr. Trump has imposed on steel and aluminum imports, Canadian negotiators have argued that these should be lifted as part of a new Nafta deal. | Those changes are generally acceptable to Canada, but it remains resistant to demands that the United States has made over broadening access to the Canadian dairy market and to abandoning an independent tariff dispute settlement system. While Mexico has agreed to put off discussions over removing tariffs that Mr. Trump has imposed on steel and aluminum imports, Canadian negotiators have argued that these should be lifted as part of a new Nafta deal. |
| Since the Trump administration told Congress that it would be modernizing the three-country Nafta, the path of treaty with just Mexico is murky. | Since the Trump administration told Congress that it would be modernizing the three-country Nafta, the path of treaty with just Mexico is murky. |
| Republicans and Democrats in Congress have suggested that a new Nafta agreement that does not include Canada will not be able to pass if it comes up for a vote, which would likely occur early next year, but Mr. Trump appears ready to dare them to topple the pact. | Republicans and Democrats in Congress have suggested that a new Nafta agreement that does not include Canada will not be able to pass if it comes up for a vote, which would likely occur early next year, but Mr. Trump appears ready to dare them to topple the pact. |
| In the meantime, the current Nafta terms between the United States and Mexico remain effective. However, Mr. Trump has repeatedly threatened to terminate that deal on his own. Doing so would also set up a clash with Congress, as lawmakers have said that the president does not have the authority to nullify a trade deal that was passed by Congress. | In the meantime, the current Nafta terms between the United States and Mexico remain effective. However, Mr. Trump has repeatedly threatened to terminate that deal on his own. Doing so would also set up a clash with Congress, as lawmakers have said that the president does not have the authority to nullify a trade deal that was passed by Congress. |
| Robert E. Lighthizer, the Trump administration’s chief negotiator, told lawmakers this week that talks with Canada would continue even after the release of the agreement with Mexico. Administration officials are hopeful that Canada will be more willing to make concessions after provincial elections take place in October. Modest changes to the text can be made after it has been released and even after it has been signed. | |
| But relations between the governments of the United States and Canada have fallen to the lowest point in recent memory, leaving open the possibility that no deal will be reached anytime soon. Mr. Trump said this week that he is frustrated with how Canada has been behaving during negotiations and vowed that he would be just as happy to levy tariffs on imports of Canadian cars — a move that would likely spur backlash from carmakers and consumers in the United States. | But relations between the governments of the United States and Canada have fallen to the lowest point in recent memory, leaving open the possibility that no deal will be reached anytime soon. Mr. Trump said this week that he is frustrated with how Canada has been behaving during negotiations and vowed that he would be just as happy to levy tariffs on imports of Canadian cars — a move that would likely spur backlash from carmakers and consumers in the United States. |
| After imposing tariffs on steel and aluminum imports against the wishes of businesses, it appears that Mr. Trump does not care. | After imposing tariffs on steel and aluminum imports against the wishes of businesses, it appears that Mr. Trump does not care. |
| “You have to believe when he threatens to do it on automobiles that he might, even though this would be incredibly painful for Americans as well,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics. | “You have to believe when he threatens to do it on automobiles that he might, even though this would be incredibly painful for Americans as well,” said Chad Bown, a senior fellow at the Peterson Institute for International Economics. |