WASHINGTON (AP) — the promoters of a new North American trade agreement had generated good inertia among the three governments, but all the efforts were suddenly halted, after bumping into turbulence caused by President Donald Trump. In the Last few weeks, Trump’s own government had taken steps to work with Democratic and Republican legislators to address some concerns regarding the proposed treaty between Mexico, the United States and Canada (T-MEC for its acronym in Spanish). Then, out of nowhere, Trump threatened days ago by applying a 5% tariff on imported products from Mexico, unless the southern neighbor took vigorous action against Central American migrants trying to cross the U.S. border. Just Days before, Trump’s government had announced the elimination of steel and aluminum tariffs from Canada and Mexico, something that abated most of the Republicans who were pushing to eliminate those trade taxes.
The Government had also pledged to meet with a group of Democrats in the House of Representatives to dispel their concerns. That gesture created goodwill, and as described by the President of the House of Representatives, Nancy Pelosi, a Democrat for California, put the Democrats “on the road to the Yes.” Now it is not clear where that path will lead. Influential business groups fear that Trump’s threat against Mexico can derail the proposed trade agreement. ” The last thing we want to do is jeopardize that historic agreement, and the two million jobs in the manufacturing industry that depend on American trade, “said Jay Timmons, president and CEO of the National Association of Manufacturers (national manufacturer’s Association of the United States). The American Chamber of Commerce announced that it was studying the possibility of taking legal measures to block the entry into force of tariffs. Some Republican party senators also reacted annoyed, especially Charles Grassley, of Iowa, president of the Senate Finance Committee. This is an improper use of the presidential Tariff authority and goes against the intentions of Congress, “said Grassley. Congress assistants working with both parties said it’s too early to say if Trump’s measure will derail the Agreement, but it will certainly make it harder for legislators to seek a better economic outlook if the tariffs against Mexico enter into force. Democrats also seem concerned, first of all by other similar events. Hours before Trump announced his tariff plan, Washington had tried to reach an agreement for a possible vote in Congress before the August legislative recess. The Government had already taken the formal steps necessary to launch the watch for the submission of a bill to Congress. Pelosi said that that “was not a positive step” and that “indicates a lack of knowledge on the part of the Government on the policy and pro- To pass a trade agreement. ” It has been a purpose for the Democrats to strengthen the fulfillment of labor and environmental standards in Mexico. To do so, they have hurry Mexican authorities to change labor laws that have generated low wages equivalent to one or two dollars an hour in some plants, which has been a strong incentive for US companies to move their production From the United States to Mexico. Mexican legislators passed a law that forces trade unions to make elections by secret ballot and show that workers have accepted their collective contracts. Democrats in Washington are trying to ensure follow-up, and Pelosi has the last word to determine the date on which the agreement is put to the vote. Like several Republican senators, Pelosi criticized Trump’s hint of imposing tariffs and said that the president’s proceeding “is not based on sensible trade policy, but has more to do with a bad immigration policy on his part.”
“Once again, the president is wreaking havoc on the border instead of providing solutions for American workers and consumers,” he said.
White House Counsel, Kellyanne Conway, explained that tariffs should not jeopardize the ratification of the trade agreement and that the President simply wants Mexico to increase its actions to contain the flow of migrants. He said the White House is confident that the agreement will be approved by the democratically-controlled House of Representatives if Pelosi puts it to the vote. Trump asserted having the authority to impose a 5% tax on all goods imported from Mexico and added that they will increase up to 25% if Mexico does not significantly reduce the number of migrants crossing the border without legal authorization. Through a tweet, the president indicated on Saturday that the companies that settled in Mexico “will return to the United States when the tariffs reach the highest levels”. Investors reacted in a negative way: the Dow Jones industrial average lost about 355 points on Friday, or 1.4%. However, Conway told the press that “tariffs are a good way to get the attention of a business partner, and it was apparently accomplished.” The Secretary of Foreign Affairs of Mexico, Marcelo Ebrard, announced that he will discuss Wednesday with U.S. Secretary of State Mike Pompeo in Washington, a meeting that analysts could help reduce tensions and avoid The adoption of retaliatory tariffs. However, Mexico and Canada have continued their respective formalities for the ratification of the trade agreement. Canada’s foreign minister, Chrystia Freeland, said it is up to the United States and Mexico to settle their dispute. ” It’s a bilateral matter, “he added.
