President Trump to Terminate NAFTA
The United States and Mexico have reached a preliminary trade agreement that is set to replace NAFTA. President Trump announced on Monday that he will be terminating the existing trade deal between the U.S., Mexico and Canada and enter into a new deal with Mexico. According to Trump, it could end up being “one of the largest trade deals ever made.” The agreement includes new rules set to incentivize manufacturers to source goods and materials in North America. Amongst a number of new regulations, it will require 75 percent of auto content to be made in the United States and Mexico, an increase of about 13 percent from the current NAFTA regulations.
What about Canada?
At the moment, the new trade deal is only between the U.S. and Mexico. Canada has been reluctant to join a new trilateral trade pact, but it has shown a continued interest in negotiating with the U.S. With that being said, the pressure is now on Canada to quickly resolve key differences that have ensnared negotiations between the two countries for months. Whether or not Canada joins the agreement has yet to be determined, but even if our neighbors to the north choose to opt out, President Trump has signaled his willingness to enter into a separate bilateral agreement.
Berardi Immigration Law will continue to closely monitor this issue and update our clients with the latest information. If you have questions on this, be sure to contact our office to schedule a consultation with one of our attorneys today!