Published: Sun, June 03, 2018
World Media | By Shelia Harmon

Trudeau says NAFTA negotiations stalled after Pence demanded sunset clause

Trudeau says NAFTA negotiations stalled after Pence demanded sunset clause

Already under fire for his combative trade policies, President Donald Trump on Friday intensified pressure on Canada, demanding that America's neighbor and close ally "open their markets and take down trade barriers".

Britain has stressed the importance of United Kingdom steel to the American defense industry.

Malmstrom said Friday in reaction to the sanctions that "the situation is worrying, it could escalate".

The European Union and China say they will deepen ties on trade and investment and that they fully support global trade rules, after U.S. President Donald slapped tariffs on steel and aluminum imports.

The tariffs of 25 per cent on steel products and 10 per cent on aluminium, which affect the EU, Canada and Mexico, came into effect on Friday.

Canada responded with duties of 25% on United States steel and aluminium, and 10% on consumer goods such as ketchup, orange juice, sailboats and washing machines, which will take effect July 1.

With the NAFTA talks seeming close to a possible breakthrough, Trudeau says he suggested to the US president last Friday that they sit down with Mexico's Enrique Pena Nieto and talk about reaching a deal.

Trudeau earlier deplored a decision by Trump to impose tariffs on steel and aluminum imports.

Mr Stace said it was too early to speculate on the likely impact on jobs, but said: "At worst, we could fall straight back into the crisis we suffered in 2015/16, which was the worst steel crisis in a generation".

Speaking on the sidelines of a meeting of finance ministers and central bankers of the Group of Seven ― the world's seven leading economies ― European Commission Vice President Valdis Dombrovskis told Reuters such an approach made it tougher to bring China in line.

As reported by NPR, the trade commissioner said while the European Union does not intend to escalate any situation, not responding would indicate that the European Union is willing to accept the tariffs, which they consider is "illegal".

She criticized Trump's decision and pointed out that the tariffs have got nothing to do with national security.

"This is stupid - it's counterproductive", Francis Maude, a former British trade minister, told the BBC.

U.S. Commerce Secretary Wilbur Ross arrives at a state dinner at the Great Hall of the People in Beijing, China, November 9, 2017.

Germany's Volkswagen, Europe's largest automaker, warned that the USA action could start a trade war that no side would win.

"There are fears that this marks the start of a negative spiral of measures and countermeasures where there will ultimately be no winners", the company said.

Soaring demand for lumber from the booming US housing construction sector, where housing starts were higher than they have been in a decade a year ago, has helped pushed prices to record highs.

In addition to Volkswagen vehicles, the company produces Audi, Porsche, and multiple other brands.

Trudeau rebuked the USA tariffs following the announcement, insisting that Canada had no choice but to fight back.

Janzen says the steel and aluminum tariffs are a unique result of Trump policies whereas softwood lumber has been an irritant for several administrations of both political parties.

If the consultations requested Friday do not reach a solution that is satisfactory to the European Union within 60 days, the European Union will be able to request that WTO sets up a panel to rule on the matter.

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