Lighthizer Slams Canada and Mexico for Refusing to Accept NAFTA Reforms

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TPP is the trade pact that President Donald Trump rejected on his first day of office.

This latest round of negotiations highlighted the significant gaps remaining among the three North American trading partners.

"But I think we're going to see a NAFTA 2.0 that will find areas that will give the USA even greater benefits, while protecting American workers". "Because of its complex supply chains that cross both borders, the auto industry would suffer the most, with autos accounting for almost 40% of exports to Canada and 22% of exports to Mexico".

"We made it clear that these are issues that from the Canadian side are non-starters", the Canadian source, speaking on the condition of anonymity, told CNNMoney.

"In certain cases, partners who agree to TPP have actually rejected its text here", he said.

"As hard as this has been, we have seen no indication that our partners are willing to make any changes that will result in a rebalancing and a reduction in these huge trade deficits", said Washington's negotiator, Robert Lighthizer.

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But uncertainty reigned at the end of the talks with a gloom dominating the negotiations with Mexico and Canada this time around after USA trade officials proposed several provisions that both countries considered nonstarters.

A round of talks in Washington that lasted seven days failed to find the most basic common ground between the three parties, and Canadian Foreign Minister Chrystia Freeland accused the United States of pursuing a "winner take all" approach.

One person close to the process said there was now a possibility that negotiations to modernize NAFTA, which underpins some $1.2 trillion in annual trade between the three countries, could collapse.

Robert Lighthizer, the US trade representative, said America's neighbors had rejected some text they had previously agreed to in the Trans-Pacific Partnership.

The fifth round of talks is scheduled for November 17-21 in Mexico City with discussions now expected to stretch into 2018, extending beyond the aim for year's end. It's possible that his administration is trying to sabotage the agreement to justify a withdrawal, said Paul Ashworth, the chief U.S. economist at Capital Economics. Some experts feel he will give the mandatory six months' notice to leave NAFTA, but not actually back out.

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