NAFTA Trade Fell Each Month This Year
The Journal of Commerce reports the twelfth month of decline in trade for the NAFTA countries. U.S trade with Mexico and Canada dropped to $57.3 billion, 20 percent lower than in 2008.
More than 85 percent of trade between Mexico and Canada is through surface transportation. According to the article, it is believed 2010 will be in improvement as signs show a turnaround in trade and the value of surface trade has a 5 perfect raise.
To read the full article, click here.
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Canadians Going Hog Wild Over Protectionism
Canada asks the World Trade Organization (WTO) to rule against an American food-labeling law that seems to have destroyed much of its hog-farming industry, states the New York Times. The dispute derives from an American rule requiring that food products be labeled by country of origin. The U.S. government denies that labeling its food products is an act of protectionism, although Americans have decreased purchases of pork produced in Canada, traditionally about 7 percent of Canadian pork is consumed in the United States.
The Canadian international trade minister, Stockwell Day, publicly criticized the rules “as so onerous that they affect the ability of our cattle and hog exporters to compete fairly in the United States.” He said Canada “has no choice” but to request that the World Trade Organization scrutinize the labeling rules.
The U.S. trade representative defended the allegations and its claim that the Obama administration is practicing protectionism by stating that the information on the labels given to consumers complies with the WTO.
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To read the full article, click here.
Canada Settles Its Anti – “Buy American” Ban
Canadian officials have come up with a resolution that threatened to ban American companies to bid on city contracts because of the ‘Buy American’ push by the United States says Canadian news source, CBC News.
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.
To read more, click here.
Study: The End of the Cross-Border Trucking Program Hurts Economy
Earlier this year, the US put an end to the Mexico Cross-Border Trucking Program and a new study has revealed that it has hurt the economy.
A study conducted by the U.S. Chamber of Commerce founded these results:
– 25,000 lost American jobs
-$2.6 billion in foregone U.S. exports
-$2.2 billion in higher costs for U.S. businesses and consumers
In March when the U.S. government decided to stop funding the two year program, Mexican authorities immediately hit the U.S. with a $2.3 billion penalty duty on 89 U.S. imported products, costing the American consumer around $421 million.
The study’s results are based on the U.S. actions towards Mexico and the Mexican retaliation. These results were analyzed by DC Velocity magazine.
To read the more, click here.
NAFTA Trade at an All Time Low on Record
Surface transportation between the U.S., Canada and Mexico has dropped by almost 35 percent over the last 5 months, according to the Bureau of Transportation Statistics.
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.
To read the full article, click here.
Tired of Waiting on NAFTA-Cross Border Trade Heats Up
On June 2nd, the Journal of Commerce reported that the Mexican National Trucking Association is tired of waiting for the U.S. to reestablish its trucking program to enter in and out of the U.S.
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.