Donald Trump To Settle NAFTA Negotiation?
The US President Donald Trump softened his main NAFTA demand for more North American content in automobile production. This was considered as a step towards reconciliation between the negotiating countries. The offer will apply that threshold (85% of major components) to crucial parts, such as transmissions and engines. NAFTA car components will be grouped into 5 categories. Some of those groups will have a softened demand for North American content, some of them won’t have one at all. The currencies of other two negotiating sides, which are Mexico and Canada, were boosted after the news. Mexico peso rose 0.7% at 18.0988 per dollar. Australia dollar lifted 0.3% to C$1.277.
Still, NAFTA countries have lots of issues that they disagree on and are yet to discuss. David MacNaughton (Canada’s ambassador to the U.S) stated: “I don’t know what an agreement in principle looks like, really. There’s still lots of issues. There’s differences of opinion and we’re going to work hard to try and narrow down the gaps and get to as much of an agreement as we possibly can." Canadian Foreign Minister Chrystia Freeland expressed her optimism, saying: “We’re making good progress in Nafta talks overall. Having said that, we’re not there yet.”