Last week we talked about the current state of NAFTA and what a new deal could potentially mean for Canada, Mexico, and the US. A new development took place on August 31 in the ongoing discussion of a potential new tri-lateral agreement among the three nations. While some progress was made, there is a still a significant amount of debate taking place on the future of a new agreement.
So what do we know?
Mexico and the US have an agreement in principle, though Canada is not yet a part of the deal. There are ongoing issues with some of the finer points of the agreement that Canada and the US will continue to negotiate.
As far as the Mexico-US deal goes, President Trump has put the proverbial wheels in motion by notifying Congress of the agreement with Mexico. The President now has 30 days to submit the details to Congress for its review and acceptance.
Keep in mind, there is still an open door for Canada to join the agreement, should they decide to move forward.
What is next and what should I expect?
Canada is the number one destination for US products. As such, a new agreement that reflects current business models is vital for both countries. It would be economically beneficial for all three nations to come to an agreement, and US Congress has expressed its keen desire to see a tri-lateral agreement come to terms.
As Canada and the US continue to negotiate, there is still time for a new agreement to come to fruition. We will monitor the status and continue posting updates as necessary.