Canada’s NAFTA gamble

“The president has made pretty clear what he thinks about the agreement, and if I was advising the Canadians, I would advise them to take his comments seriously,” the source said.


Auto-trade rule befuddlement: The Trump administration is puzzled why Canada is so closely aligned with Mexico on the issue of auto rules of origin, the source said, since it has lost significant market share in auto production over the nearly 24 years NAFTA has been in force.

The source pointed to a recent study by the Centre for International Governance Innovation, based in Waterloo, Canada, which shows that Mexico’s auto production totaled nearly 3.6 million units last year, compared with 1.1 million in 1994, the pact’s first year. Over the same period, U.S. auto production declined slightly, to 12.2 million units, and Canadian production climbed only about 50,000 units, to 2.37 million.


“They are losing market share in auto production in North America. We put forward a serious proposal and they just say, ‘We’re on the side of Mexico,'" the source said.

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