Less trade, more hassle: NAFTA 2.0
① Canadian negotiators are in Washington to try to wrap the bilateral deal that Mexico and America struck earlier this week into a trilateral one.
② The new North American Free Trade Agreement is unlikely to keep its name, and even less likely to strengthen its member economies.
③ Most changes concern cars.
④ Rules for what can qualify as a tariff-free vehicle will tighten: how many parts must be made by workers making $16 an hour, the percentage of North American steel and so on.
⑤ A limit on the number of non-compliant vehicles is also reportedly being discussed.
⑥ The effect will be to make cars pricier, and to make fewer cross borders.
⑦ The deal will also be more fragile than the original, with a review after six years and potential expiry after 16.
⑧ Mr Trump has threatened that if Canada does not join soon, he will sign the accord with Mexico alone.
⑨ What's for the Canadians not to love?
