Catalytic Naphtha Reforming Part 1
The United States has achieved the reform of the sales alliance naphthaspade hemisphere comes to the norm permarability of the NAFTA Agreement, approved in 1994, was initiated by the American White House in August 2017. Dedine to reach an agreement with Canada expired on Monday – August 31 The administration has already notified the Congress about the transaction with Mexico, and the US lawmakers would have received the text of the agreement only with this country. At the same time, Mr. Trump declared that the deal would be approved in any case – with Canada or without it, and demonstratively conflicted with the Canadian Prime Minister Justin Trudo. On October 1, the presidents of the three countries have already been constructively discussed by the details of the USMCA at a triple phone conference.
As the United States and Mexico were able to remove the main differences in mutual trade
Following the negotiations, the Canadian side promised to provide access to the domestic market of dairy products (in fact, on the conditions previously agreed upon in the framework of the transducean partnership, from which the United States came out – now the government of the country establishes quotas and price of milk, American manufacturers will receive 3.5% of the $ 16 market billion). In Washington, in turn, agreed to preserve the dispute resolution mechanism in Naftha in Nafta in a special arbitration court (it allows you to challenge the US anti-dumping measures for imported products). The agreement displays cargo delivery duties, trucks and autocomponents in the USA – if you decide to introduce defense rates in Washington, Canada and Mexico will have a quota for 2.6 million cars (in both cases it is higher than current export levels).
At the end of August, the United States has already agreed with Mexico City. The main requirement was the increase in the supply of products produced inside the zone in the auto industry, for the possibility of importing without duties from 62.5% to 75%. These are mainly about cars produced in Mexico and then exported to the United States, initially the American side insisted on raising the threshold to 85%. In addition, the two countries agreed that the agreement would be a reservation that at least 45% of the details should be carried out by workers, the wage of which is at least $ 16 per hour. For the US, this question is at least symbolic: the rhetoric of President Trump in this part is based on the fact that the production of autocompons and cars in the United States is depressing low wages in Mexico, and similar circumstances are generally leading to the flow of illegal migrant workers from Mexico in the US.
Achievement of agreements on a new agreement does not involve the withdrawal of the US and Aluminum Import and Aluminum.
Canada actually suspended negotiations in early June, after the United States extended the effect of increased tariffs for a number of countries, including Nafta participants. As a result, Canada introduced response duties to US $ 12.8 billion. In Mexico, the response measures were estimated at $ 2.9 billion, on Monday in the Mexican Foreign Ministry, they stated that they hope to resolve the dispute before signing USMCA.
“The most significant change in the new agreement is a new name, the rest of the concessions were quite modest – an increase in the share of products in the auto industry will only lead to a small increase in American exports, the effect of dairy products to Canada is even smaller,” indicate Capital Economics. However, the transaction itself is another evidence that Donald Trump is able to move away from hard rhetoric in exchange even on relatively small concessions, allowing him to declare victory in the negotiations. It will not pass unnoticed in the EU, Japan and China, the experts of the Center are noted, if the United States will introduce protective duties on cars, but their action will be frozen for European and Japanese automakers, the tariffs will affect only 15% of US imports.
Why the United States raised the tariffs for imports of steel and aluminum from the EU, Canada and Mexico
The full text of the USMCA is not published – most likely, it simply does not exist now. The document itself, as the Mexican government clarified, is supposed to sign on the G20 summit in Buenos Aires on November 29. From the most famous differences in Nafta from USMCA in the future, it is important to disseminate the new contract for the entire sphere of the IT industry, financial services and the sphere of intellectual property, as well as a revision mechanism built into USMCA once every six years of the terms of the agreement. In Nafta, there were no such opportunities, which caused the accumulation of disputes around him, and they could not be allowed to resolve otherwise as negotiations according to the “all or nothing” scheme (which, in fact, occurred in August 2017).
The US Presidential Administration assumes that the USMCA will be a “template” for all subsequent agreements. With China, however, to avoid strengthening mutual protectionism will be much more complicated, expect to Capital Economics. The same, obviously, is true for the EU. Nafta resuscitation on not the most stringent conditions shows that the backlash between the US negotiation position and the ending conditions of the transaction can be great. In the case of the EU in the “puzzle” of trade relations there is a critical element that enhances the position of the United States: the United Kingdom after “Brexita” can deliver from 2020 to a closer shopping alliance with the United States. For China, the concession of the United States in USMCA can be a signal: “Resistance in these negotiations is rewarded”. Representatives of the US Department of State on Monday noted that the Progress in other negotiations canadian-American-Mexican deal apparently will not cause. But the main goal of Donald Trump is a new trade regime with the PRC, and not with Europe. With the most likely the United States will prefer compromise to resolve all the controversial trading issues, except for the last and chief – Chinese.