USA, Canada and Mexico begin to renegotiate the Nafta review

The United States, Canada and Mexico start on Wednesday (16) to renegotiate the agreement that there are 23 years abolished their customs borders, something crucial to the Mexican economy, but whose future Donald Trump put in doubt.
The first round of negotiations on the free trade treaty of North America (Nafta) runs until Sunday in Washington, after months of uncertainty since the American President promised to end the agreement which includes almost 500 million people.
"We''re making major changes, or we get rid of Nafta forever", reiterated that the Trump considers "a complete disaster for the United States".
Washington questions your balance of trade deficit with Mexico, which since the signing of the agreement, in 1994, went from a surplus of $ $1.3 billion to a deficit of $ $64 billion. He also criticizes the loss of skilled jobs because of the closure of factories who preferred to settle in Mexico to take advantage of the cheap labor location.
"Many of those who lost their jobs have found other, but earn about 20 percent less, while in Mexico the wages have fallen 9% since Nafta. So, the Mexicans can''t buy American goods, "told the press the Congressman Democrat Tim Ryan.
An official of the U.S. Trade Department ensured that the goal of the review is to benefit the three countries.
"Our starting point for the negotiations is to achieve a more balanced and reciprocal trade agreement," said he, who declined to identify himself.
The Canada want the protection of the environment is at the heart of debates and announced he will seek stand-alone peoples rights standards and protection of the workforce.
"Many workers feel abandoned by the world economy of the 21 century," said the Canadian Minister of Foreign Affairs, Chrystia Freeland.
'' Scrambled eggs ''
Mexico already comes to the negotiating table to eye in "preserve and strengthen" the achieved, said the Secretary of economy, Ildefonso Guajardo, who heads the negotiating delegation.
Nafta is crucial for Mexico, which has multiplied by six trade with the United States, your country sends 80% of its exports, especially manufactured goods and agricultural products.
With your review, Mexico "a process of growth and consolidation in North America that was very profitable," said Guajardo a few days ago the Reform Group.
"Mexico and United States are like the egg: no longer gives to separate clearly the gem", highlighted in a panel Duncan Wood, Director of the Mexico Institute, the Wilson Center think tank, citing a Mexican businessman that summed up so the interdependence of the two economies.
The risk that the United States abandon the Nafta is real, reminded the Director Emeritus of the Peterson Institute of international economics (PILE), Fred Bergsten.
"Failure is an option. We don''t like to say this. We don''t like to think about it, but it''s true. And this means that it is very important for (Canada and Mexico) keep in mind how expensive it would be for the United States ".
Regular disputes
The revision of the mechanism of regulation of trade disputes, known as the "Chapter 19", that allows to judge disputes relating to dumping, is another thorny issue.
Environment Canada, in particular in the sector of construction timber, is resentful for United States, that will try to suppress it.
Mexico already adopted last month a resolution for their negotiators to withstand any possible elimination.
"When Nafta was negotiated, somehow the dispute mechanism was the best approach to achieve, but maybe there are new provisions and elements that can be added to Nafta 2.0", opined the former Undersecretary of foreign trade Francisco de Rosenzweig.
Intended to modernize the agreement signed before the era of the Internet, the Nafta review has no date to end, but all parties predict seven to nine rounds of negotiations and expect to have had success before the general elections and parliamentarians from Mexico in July 2018, and the United States '' legislative in November 2018. Both the electoral disputes could disrupt the debates.
The second meeting will be in Mexico City on September 5, and the third, in Canada, on a date not yet announced.