Nafta Sunset Clause 'Creating Uncertainty,' Ex-Trade Rep. Says

The transcript discusses the potential for a NAFTA deal, focusing on the challenges posed by the sunset clause and the need for creativity in negotiations. It highlights Canada's opposition to the sunset clause and the possibility of separate deals. The impact of the Mexican government transition on negotiations is considered, along with the bandwidth required for multiple trade talks. The shift in trade focus from manufacturing to services is noted, as well as the use of national security grounds for tariffs.

What is the main challenge in finalizing the last 10% of the NAFTA negotiations?

• Agreeing on the Trans-Pacific Partnership text

• Implementing a sunset clause

• Increasing investment in Canada

• Reducing tariffs on steel

Why does Canada oppose the sunset clause in NAFTA?

• It wants to prioritize Mexico

• It seeks to increase tariffs

• It believes in a permanent trilateral pact

• It prefers bilateral agreements

What is a potential consequence of separate trade deals in North America?

• Higher tariffs on all goods

• Increased certainty for businesses

• A unified production platform

• Disruption of integrated supply chains

Why is it important for Mexico to finalize a deal before the new government takes over?

• To align with U.S. election cycles

• To avoid changes in negotiation teams

• To ensure continuity in policy

• To prevent tariff increases

What internal challenge does the U.S. face in trade negotiations?

• Insufficient trade data

• Division within the administration

• Lack of experienced negotiators

• Opposition from Canada

What sector does the U.S. have a trade surplus in?

• Services

• Manufacturing

• Automobiles

• Agriculture

What is a potential risk of using national security as a reason for tariffs?

• Reducing domestic production

• Increased global trade

• Encouraging other countries to do the same

• Strengthening international alliances