“The largest benefits will come from economic integration,” says Jayson Myers, president of Canadian Manufacturers & Exporters (CME), the country’s largest trade and industry association. By that he means increased foreign direct investment, improved labor mobility and full access to government procurement.

But, will this new proposed trade agreement see the light of day? That may be up to the U.S. Canada is more dependent on exports than the U.S., and with the new ‘Buy-American’ campaign from the Obama Adminstration, this could be a hard sell.

“The ball is in the Obama administration’s court,” says Steven Schrage, a specialist in international business at the Center for Strategic and International Studies (CSIS) in Washington. “If they want this to happen, they can move rapidly.”

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The threat to ban American companies deminished after it was reported that the U.S. would exempt Canada from the “Buy American” created in the Stimulus Plan.

“We are encouraged by the talks now underway between Canadian and U.S. officials and want to give them the time and space to reach a successful outcome,” federation president Basil Stewart said Saturday Oct 3rd.

The resolution created by the Federation of Canadian Municipalities  will  support cities that adopt policies allowing them to buy only from companies whose home countries don’t impose trade restrictions against Canadian goods. The action was to take effect Sunday.

The “Buy American” provision gives priority to U.S. iron, steel and other manufactured goods for use in public works and building projects funded with taxpayer stimulus money.

Canadian governments and businesses are against the policy, arguing it violates NAFTA.

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The inspectors were replaced with 1,400 agents who have undergone background checks and months of training, Tax Administration Service spokesman Pedro Canabal said yesterday. He said the previous inspectors were not rehired when their contracts expired.

This action took place as a result of increased drug gangs and tax evasion.

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U.S.–Canada surface transportation trade totaled $31 billion in June, down 36.6 percent compared to June 2008. The value of imports carried by truck was 34.8 percent lower in June 2009 compared to June 2008, while the value of exports carried by truck was 28.8 percent lower during this period.

U.S.–Mexico surface transportation trade totaled $19.7 billion in June, down 21.8 percent compared to June 2008. The value of imports carried by truck was 18.0 percent lower in June 2009 than June 2008 while the value of exports carried by truck was 14.3 percent lower, BTS said.

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Canadian-U.S. surface trade is down by 40 percent, more than Mexico-U.S. Could the rise of gas prices, the recession and the recent discussions concerning tighting border patrol have anything to do with that?

But, what’s not shocking is the reduced traffic between the U.S. and Mexico. Since the Mexican National Trucking Association has filed a formal compliant against the U.S. government for removing the cross border trucking program, reducing access for Mexican truck drivers on the U.S. highways. The association has reported a $6 billion loss of business.

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Since March, the Department of Transportation and the Mexican National Trucking Association has been working on a new cross border trucking program, paperwork should be sent to Congress this month.

All this wait has upset Mexican truckers, who is seeking arbitration under NAFTA with the U.S. State Department claiming damages up to $6 billion for lose of business because of denied access to the U.S. highways.

To read the full article: Mexican Truckers Demand $6 Billion from U.S.