Donald Trump, along with Mexican President Enrique Peña Nieto on a conference call, announced Monday that they will be changing parts of NAFTA. NAFTA, North American Free Trade Agreement, includes the US, Mexico, and Canada. Canada was left out of this meeting. Trump said that NAFTA had a bad connotation and now it will be called the United States - Mexico trade agreement. One thing talked about was where auto parts are made. 62% of parts in any car sold in North America must be produced in the region or automakers must pay import taxes. In the new agreement, 75% of parts must be made in Mexico or the US.
Due to the new agreement, stock markets have gone up. The agreement also could start renegotiations between all NAFTA members. The 24 year old agreement prevents tariffs between the three member countries. Donald Trump slapped tariffs on steel and aluminum earlier this year despite the agreement. Mexico retaliated with tariffs of their own. Canada also put tarrifs on some of their supplies.
Do you think this is the right descision? Why or why not?
I think in the long run this will help relations. I believe this because the way things are done now are different that things were done 24 years ago. A revised agreement is a good descision.
Do you think that Canada will give in and renegotiate their part of the agreement? Why or why not?
I think Canada will give in. Again, things are different than they were 24 years ago. As they see other countries revising agreements, they will feel that they should do the same. Plus Canadians are supposed to be very friendly.
Replies
Well done Alex!
I think that this was the right choice because I think that since the stock market went up, our economy has been doing better and is striving at this time. And since the stocks are going up the economy might keep succeeding. I think that since Canada missed out on the meeting, Mexico and North American are missing out on the potential land that they could be producing parts on.
I think this is the right decision because now Stock Markets have gone up and it will create more jobs. Plus the agreement is outdated. I do think Canada will renegotiate because they will see that it has made Stock Markets go up so they will renegotiate and do the same.
I agree that this outdated agreement must be revised. I think that damage has been done in adding tariffs before editing the agreement. I'm not sure why Canada was not a part of the discussion between the US and Mexico, but I think that may have been harmful to the US's relationship with Canada.
I like how you said that the agreement is "outdated" and it must be revised. I completely agree with that statement. It is odd that the third partner of NAFTA wouldn't be apart of talks.
I think this was the right decision because I beleive it will help our stock market and enconomy in the future. As you said, things are different than they were 24 years ago, and a revise of the agreement was probably needed. I think that eventually Canada will realize that being a part of this will benefit them and will want to be a part of it.
It has already helped the stock market and our economy. Yes, things are very different than they were 24 years ago. It would also be the right decision for Canada to join in with talks.
I definitely think this was the right decision on their part because the stock market has gone up, which means the economy is doing well at this time. This decision is helping our country continue in the right direction.
I think Canada might jump back in once they see how much it's helped boost our economy. They may feel that it will benefit them rather then them being excluded from the agreement and not benefitting at all. I feel as if Canada should have never left the agreement in the first place because, like you said, they will see other countries revising agreements and will want to be apart of it.
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Yes, the stock market and our economy rising makes this decision a very good one. Canada should start talking with the US and Mexico to see how it will benefit them in the long run also.
Yes, Ths is going to help the stock market and our economy. I think Canada will want to be apart of this. I also believe that Canada feels left out because Donald Trump didn't include them in the conference call.
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