US and Mexico reach trade deal
The US has reached a deal with Mexico to reduce tariffs. Negotiations with Canada are next in line. Since he came to power Trump has been calling for the Nafta agreement between the United States, Mexico and Canada to be revised, because in his opinion it puts the US at a disadvantage. Is the result of the negotiations a success for Trump and free trade?
Trump assembling absurd patchwork rugs
Trump's detailed deal with Mexico doesn't bode well for other economic agreements, the Süddeutsche Zeitung criticises:
“He prefers to negotiate with each country separately than with all of them together within the framework of the World Trade Organization. But the result is absurd agreements like that with Mexico. ... In the end every car produced will come with a kind of despatch note listing not just the place of origin and the value of thousands of individual components but also the salaries of all the employees at suppliers and manufacturers. With this trade policy which he is also trying to impose on Europe Trump is creating a complex patchwork rug. The extremely detailed rules which vary from country to country certainly won't make global trade any fairer, just much more complicated.”
A big success for the White House
The Mexico deal shows that the US president can secure advantages for his country's economy with his tactics, The Daily Telegraph writes in praise:
“The new deal seeks to end the unfair advantage Mexico has enjoyed for two decades by dint of its lower employment costs. ... The fact, though, that, with the Mexico deal, Mr Trump has proven his detractors wrong, and that it is possible to secure better trading conditions for American businesses, is a significant victory for the White House, one that suggests the Trump administration is deeply serious about fulfilling its manifesto commitments. … While Mr Trump might not be the most sensitive politician ever to have occupied the Oval Office, he could still prove to be one of the most effective.”
Really tough negotiations yet to come
The negotiations with Canada won't be as easy for Trump as those with Mexico were, US expert Oleksandr Tsvyetkov predicts in Den:
“The three countries are now trying to establish a new framework and new terms - on the basis of the US's position. At the same time, however, both Mexico and Canada want to maintain the interests protected by the former treaty. But if the US wants a new deal, there must be new agreements. As things progress above all the negotiations with Canada are expected to be extremely difficult. By comparison, Mexico is a pushover for the US.”