Apr 20, 2018

Posted by in General Article

NAFTA Win Is Possible, but the Hard Work Is Not Yet Complete!

Market analysts have predicted a possible win on the North America Free Trade Agreement, but they are worried that substantive work is still far from complete. NAFTA is a treaty that will allow all North American countries to trade freely and is expected to benefit all retailers a great deal.

Experts feel that the early announcement of a preliminary agreement of the North American Free Trade in this week’s Peru summit may temper people’s expectations of a fruitful future.

In fact, according to a U.S. lawyer, Dan Ujczo, an announcement of a handshake deal could be made as early as mid-April to help calm market alterations and political issues surrounding NAFTA, more so with Mexican and American elections around the corner.

He, however, cited that the only likely win at this stage is an “agreement-in-principle” because it will allow for future alterations to the deal intended to help address complaints come the elections.

On the other hand, Laura Dawson of Wilson Center expressed his lack of confidence on NAFTA. She insists that no substantive results will be announced any soon because there’s still much to be done.

The Gaps to bridge

 

American, Mexican and Canadian politicians are showing increasing optimism to achieve a win, negotiators are getting ready for eighth meeting scheduled for this month in Washington. The U.S. however insists on quick progress and is threatening to impose tariff on aluminum and steel and imports from Mexico if May 1 reaches without a deal.

 

Canada’s chief negotiator on the NAFTA agreement Steve Verhuelfeels there some “significant gaps, in the auto sector, government procurement, dispute settlement, government procurement, the United States’ suggestion for a sunset clause and “many other issues.” However, he also agrees that there’s enough room for productive discussion but urges governments to be responsive.

Conclusion

Whether we should rely on this prediction is still a subject of concern. But moving forward, everyone is hoping the talks end up in an official handshake. And because all talk and no action never bore any fruits, the responsible bodies should actively work to ensure the accord reaches the final stage.

Author Bio: Electronic payments expert Blair Thomas co-founded eMerchantBroker, America’s leading Canadian merchant Account provider serving both traditional and high-risk merchants. His passions include producing music and traveling to far off exotic places. 

 

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