National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Major Trade Pact Reached by 11 Pacific Rim Nations
An agreement was reportedly reached this week on a new Trans-Pacific Partnership trade deal among 11 Pacific Rim nations. Negotiations in Tokyo cleared the remaining sticking points, and the accord is expected to be signed in March when the nations meet again in Chile.
The U.S. withdrew from the negotiations last year. The Trans-Pacific Partnership pact comes just as the latest round of North American Free Trade Agreement trilateral talks formally commenced this week in Montreal.
Automotive manufacturing is one the most contentious sticking points. The Trump administration wants to increase the number of light vehicles made in North America to 85% from the current 62.5%, and require half the vehicle’s parts be U.S.-made, to qualify for duty-free trade among the countries. Both Canada and Mexico are against the U.S. Nafta proposal on autos, and are expected to present counteroffers during the Montreal discussions.
As the Trans-Pac deal was being crafted, the Trump administration slapped steep tariffs on imported solar panels and washing machines. That move reflects the President’s harder line on trade that has been a part of his narrative since the election campaign.
There is hope among Trans-Pac leaders that once the 11-nation pact is up and running, the U.S. might consider rejoining the deal. And some envision the Trans-Pac agreement could also provide a framework for a future Nafta deal if the Trump administration scraps the current one.
For comments, questions or concerns, please contact Dennis Kaiser
