Trump Lauds Nafta Successor Accord, Chides Tariff 'Babies'
Comment of the Day

October 01 2018

Commentary by Eoin Treacy

Trump Lauds Nafta Successor Accord, Chides Tariff 'Babies'

This article by Shannon Pettypiece and Andrew Mayeda for Bloomberg may be of interest to subscribers. Here is a section:

The new agreement makes modest revisions to a trade deal Trump once called a “disaster,” easing uncertainty for companies reliant on tariff-free commerce among the three countries. U.S. stocks climbed on Monday toward records, while the Canadian dollar and the Mexican peso gained. The S&P 500 Index climbed 0.6 percent by 12:29 p.m. in New York.

Trump cited in particular provisions governing automobiles, raising the portion of their content that must originate within the region to 75 percent, from 62.5 percent, and requiring at least 40 percent of a car to come from workers whose pay averages more than $16 per hour. The president called those rules “the most important thing” for him.

Eoin Treacy's view

The cosmetic changes to the NAFTA agreement provide some protections for workers but no so much that the fabric of the agreement is going to be fundamentally changed. That’s a significant development of North American markets since the trade they do with each other is at least as significant as what is done with the rest of the world.

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