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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“European and North American Politicians Are Plotting the Biggest Trade Deal of the 21st Century”
According to CNN, EU and Canadian officials sat down in Prague to begin discussions on a new Free Trade Agreement. Let’s just say, discussions went well because if the other NAFTA countries sign in, this could be the ‘biggest trade deal of the 21st century.’ NAFTA-EU trade would contain nearly 1 billion people and account for $35.2 trillion in annual GDP, more than half the world’s trade.
“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.”
To continue reading, 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.
Protectionist or Pro-Free Trade?
Is President Obama a protectionist or pro-free trade? Both, according to a recent Los Angeles Times editorial. President Obama has been quoted as saying more jobs are created and costs are lowered in a free trade economy. But, the recent Stimulus plan angered many with the ‘Buy American’ clause attached to the plan.
Recent news about the large tariff placed on China for its tire imports, and refusing to allow Mexican truck drivers into the U.S. has also raised eyebrows to protectionism. But trade issues is not a new problem and not just in the United States.
Earlier this month, the WTO listed 91 potentially protectionist measures taken by G-20 members between the April summit in London and the end of August, and Global Trade Alert, a trade watchdog group affiliated with the World Bank, puts the number at 121 since November.
The position on protectionism or opening free trade even more will be answered in a matter of time. The G-20 summit began last week and will discuss these issues. President Obama will have the opportunity to make his stance on protectionism or pro-free trade more clear.
To read the full editorial, click here.
Mexico Fires All of Its Customs Inspectors
According to the Philadelphia Inquirer, Mexican officials have fired all 700 customs inspectors to root out corruption. 1,400 newly trained inspectors are hired as replacements. The new inspectors were heavily trained to detect fire arms, drugs, tvs, and other popular items smuggled into Mexico on a daily basis.
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.
To read more, click here.
NAFTA Trade Update
According to The Journal of Commerce trade surface transportation has fallen by 31 percent in June as compared to last year statistics. June was the ninth month in row showing a decline in trade and the eighth showing a double digit loss.
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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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.