Canadian Legislative News
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The United States and Mexico announced on August 27 the framework for a new bilateral deal to replace the present North American Free Trade Agreement (NAFTA). The deal potentially increases North American content quotas for tariff-free treatment under the agreement.
This effort represents the most significant piece of progress in continental trade since the Trump administration took effect.
Canada has stood back from the most recent rounds of talks between Mexico and the U.S., allowing the two parties to reach agreements on their respective differences, with a view to coming back to the talks immediately after any U.S.-Mexico deal has solidified.
The positive effect for the automotive industry would be significant, especially if a threatened 25 percent tariff from America is taken off the table as a result of any new deal. This would have been a massive challenge to the industry on the continent. For now, the threatened tariffs remain a possibility until Canada can successfully conclude its own negotiations.
