Trade Talk | This Week In NAFTA
Trade - Trump and the State of Affairs for NAFTA
What We Know For Sure:
- Products will continue to go to the U.S. from Canada and products will continue to go to Canada from the U.S.
- Duties, taxes and fees will still need to be managed, filed and paid.
- Businesses will continue to do business across our borders.
- Where there is a need, there will be a trade.
As a result of the new U.S. administration's position on trade and the imposed renegotiation of NAFTA, many questions have been raised surrounding the future exchange between our nations. At this point we, like you, are waiting for definitive information. There are expert opinions, historical references and case studies of all possible outcomes floating around and people are both unclear and concerned. Each week Pacific Customs Brokers will continue to focus on providing clarity to you through this series. Our research team will be sifting through all available resources and presenting those most relevant to you, our readers. We hope these tools will allow our clients to plan for the future, adapt to impending changes quickly and quell fears.
What We Are Talking About:
Many people who contact us either through our website, social media or our 24/7 phone lines are, in many cases, trying to understand exactly what NAFTA is, what does renegotiating NAFTA mean, or how to prepare a business to best continue trade between Canada and the U.S. should this happen. NAFTA being a primary subject we want to refer you to a video we presented earlier that should assist with clarification on what NAFTA is, means, who it might relate to and what it entails.
Below is an introduction to the North American Free Trade Agreement also known as NAFTA, complete with the history, inception and what it entails. If you are unfamiliar with this Free Trade Agreement, it is our recommendation that your education begins here.
Video: What Is NAFTA?
What We Think:
We are feeling encouraged with this news out earlier today, it is well worth a share with our readers:
Trudeau's cabinet is meeting in Calgary with Trump atop the agenda. The lawmakers hosted Stephen Schwarzman, chief executive officer at Blackstone Group LP and head of the president's strategic and policy forum, on Monday to decode Trump's trade agenda as he bowed out of the Trans-Pacific Partnership and took another step toward reworking the North American Free Trade Agreement.
Schwarzman flew in for the briefing before returning to New York, and emerged singing Canada's praises and urging Trudeau not to panic. "I don't think he should be enormously worried because Canada is held in very high regard," he said, adding Canada has a "special status" that could exempt it from new border taxes.
Canadian executives and policy makers have been on tenterhooks awaiting details of Trump's trade plan, which could include revamping NAFTA, imposing new border tariffs or making tax changes in the U.S. that would put exporters in the northern country at a disadvantage. Total trade between the two countries was $541 billion in 2015.
How To Accurately Complete A NAFTA Certificate Of Origin
What We Advise:
Stay tuned for our updates here in your inbox. As things become clear or shift we will keep you informed and advise best practices moving forward. If you would like to talk to an expert for a consult - call our 24/7 reception team and they will connect you any time day or night. Keep in mind the points we shared above as these are truths regardless of NAFTA news in the current headlines:
- Products will continue to go to the U.S. from Canada and products will continue to go to Canada from the U.S.
- Duties, taxes and fees will still need to be managed, filed and paid.
- Businesses will continue to do business across our borders.
- Where there is a need, there will be a trade.
