Trump double crosses Canada NAFTA deal with Mexico’s help.
And this despite Prime Minister Trudeau’s assertion he is helpful about the deal.
For starters Trump has boxed Canada into a corner.
His deal with Mexico makes that clear.
Canada asked to be part of the NAFTA trade talks between Mexico and the U.S. but was refused.
Once Trump had a deal with Mexico he told Canada take it or leave it.
Take it meaning – agree to our demands.
Leave it and we will impose onerous duties on Canadian-made cars coming into the U.S.
These cars are one of Canada’s most important exports.
Having to pay these onerous duties would be a disaster for the Canadian economy.
Trump Double Crosses Canada NAFTA Deal
This would be enough to throw us into a recession because the auto industry is so important to Canada, We are in unchartered territory here, ” Philip Cross, the former chief economic analyst at Statistics Canada, tells the New York Times.
Another indication of Trump’s double cross was when Chrystia Freeland, our foreign affairs minister, cut short a European visit.
She rushed back to Washington to muscle her way into the bargaining sessions.
Now Canada is under pressure to sign the deal under Trump’s terms.
She says Canada will not sign a deal unless it is good for the middle class and good for the country.
But that is political rhetoric.
She is trying for a positive spin on a bad situation.
And already reports indicate Canada is willing to give up protection of its dairy industry.
This always has been a thorn in Trump’s side.
Currently U.S. producers do not export into Canada because of high tariffs.
But if Canada drops them or a portion of them the Canadian dairy industry would face dire straits.
Canadian would buy American dairy products due to their cheaper prices.