Talks on the North American Free Trade Agreement have started on 16th August between the US, Canada, and Mexico. The outcome of the discussions means a lot for markets like Canada who depend on the US for thriving. But that view is mostly propagated by the US and the scene of Canada trading is a bit different, points out experts.
The round 1 of the talks saw the US pressing for major changes in the NAFTA and presented some demands which were expected by the trading industry. The US seems to be in a hurry to get over with the agreement before the elections in Mexico forgetting that the other two participants have quite a leverage to sway decisions in their favor.
In view of America, it is a self-reliant large scale market which does not need to conduct free trade with neighboring countries to survive. So it may seem that Canada is relying on America for a favorable outcome of the NAFTA talks. But the situation is a bit different in reality.
Canada is the largest importer for 2/3 of American states being the country’s one of the largest export market. Besides trading, which is one of the main economic branches, there is one more high-popular field in Canada. The gambling industry, presented by a wide range of gaming sources can boast of its trusted websites like ValleyGames guide or others, where you can find a list of best Canadian online casino.
Chrystia Freeland, Canada’s Foreign Affairs Minister argued on the first session of the NAFTA talks that Canada purchased $8.1 billion more than it exported to the USA in 2016. A lot of business interests are linked between the countries and many influential politicians and entrepreneurs can get irked if the USA decides to abolish free trade.
Canada on its part is making sure that it is prepared and fully capable of presenting themselves powerfully in the talks. Ted Alden, a senior fellow at U.S. Council on Foreign Relations said that Canada has developed a comprehensive strategy forming alliances with federal and provincial politicians who are dependent on free trade for their state. The country also has been able to connect with their American counterparts who thrive on the NAFTA. All of them are influential people and can influence the US government’s decisions on the Agreement.
Canada can be benefitted from this backlash from politicians and legislators which will discourage Trump from acting negatively. It will also give confidence to Canada to stand on its arguments and maybe decline from finalizing a bad deal. According to the Alden the negotiation will not be as one-sided as US government expects it to be.
Mexico is also a strong contender as it counts for US’s major agricultural exports. Many legislators and members of the Congress will be displeased if the charges on trading are increased or impacted negatively. Both Canada and Mexico have the potential to put in considerable weight in the discussions and influence towards the development of a fair NAFTA serving the interests of all stakeholders.