Trump's NAFTA revamp would require concessions, may borrow from TPPWASHINGTON (Reuters) - President-elect Donald Trump’s plan to renegotiate the North American Free Trade Agreement (NAFTA) to make it “a lot better” for U.S. workers would not be a one-way street for his administration, as Canada and Mexico prepare their own list of demands that could require difficult U.S. concessions. The 22-year-old NAFTA and other trade deals became lightning rods for voter anger in the U.S. industrial heartland states that swept Trump to power this month.  Trump — who on Monday vowed to file notice of his intent to quit an Asia-Pacific trade deal on his first day in office — has pledged to leave NAFTA if it can’t be improved to his liking. But he has said little about what improvements he wants, apart from halting the migration of U.S. factories and jobs to Mexico. Trade experts, academics and government officials say Canada and Mexico would also seek tough concessions and that NAFTA’s zero-tariff rate would be extremely difficult to alter. And any renegotiation would likely take several years. “In a renegotiation, one side can come in with requests, but the other side is going to expect concessions,” said Wendy Cutler, a former deputy U.S. Trade Representative (USTR). “We need to know what we’re going to ask for and what we can give.” When Cutler helped renegotiate a stalled trade deal with South Korea in 2010, USTR won concessions for U.S. automakers, but at the expense of a longer phase-out on steep Korean pork tariffs and allowing Korea to largely maintain a health care reimbursement system that favors domestic generic drugmakers. Trump, who during the campaign called NAFTA the “worst trade deal ever” and threatened to levy a 35-percent tariff on Mexican-assembled autos and other goods, would have a hard time raising U.S. tariffs without scrapping the agreement, trade experts say. “There is no precedent in free trade negotiations for one side raising tariffs more than the other,” said Chad Bown, a senior fellow at the Peterson Institute of International Economics in Washington. “If U.S. workers are more expensive than Mexican workers, the only way to level the playing field is to do things that raise costs in Mexico,” Bown said.   Negotiating stronger environmental and labor protections would be one way of doing this, as it would increase manufacturing costs in a lower-income country like Mexico. The Trump transition leader for trade, Dan Dimicco, declined Reuters’ requests for comment. DiMicco, who is under consideration to be Trump’s top trade negotiator, is a former chief executive of steel giant Nucor Corp. who has long fought for protections against unfairly traded imports. In a YouTube video message published on Monday, Trump vowed to quit the Trans-Pacific Partnership (TPP), a proposed 12-country Pacific-rim trade bloc. Although the TPP terms were settled more than a year ago, the pact was never taken up by U.S. Republican leaders in Congress due in part to anti-free-trade rhetoric in the presidential campaign.      Calling it a “a potential disaster for our country”, Trump said his administration would instead negotiate “fair, bilateral trade deals that bring jobs and industry back onto American shores.”  His comments would appear to snuff out any hopes among other TPP countries that the pact championed by President Barack Obama could be revived under the new administration. Mexican President Enrique Pena Nieto said at a Pacific Rim summit on Saturday that he would be willing to discuss NAFTA with Trump to “modernize” the treaty — but not renegotiate existing provisions. He said that modernization could include adding environmental, labor and other provisions that weren’t contemplated when NAFTA was being negotiated in the early 1990s. Canadian Prime Minister Justin Trudeau, who met with Pena Nieto on the APEC sidelines, said he was “keeping our options open” on trade discussions with the U.S. president-elect.    But if NAFTA is reopened, Canada will insist that any renegotiation bring an end to a decades-old dispute over Canadian exports of softwood lumber, said David MacNaughton, Canada’s ambassador to the United States. U.S. producers claim the Canadian wood is unfairly subsidized because it comes from federal lands and have threatened to seek billions of dollars in tariffs, which Canadian officials say would make a “mockery” of free trade. For Mexico’s part, any concessions that would favor U.S. industrial goods could be met with demands to increase U.S. import quotas for Mexican sugar and protections for Mexico’s potato crop. And both Mexico and Canada would likely demand greater access to compete for U.S. public sector procurements, now largely protected by “Buy America” laws. A major Trump administration infrastructure spending program would make this a more enticing target, Cutler said. Since NAFTA was enacted, total U.S. trade with Canada and Mexico has quadrupled to $1.3 trillion a year, but the U.S. combined goods trade deficit with Canada and Mexico has grown from $9.1 billion in 1993 to $76.2 billion in 2015. (Graphic showing trend in U.S. trade deficit, imports: tmsnrt.rs/2gajLSa) NAFTA’s effect on U.S. jobs is disputed. Critics such as the left-leaning Economic Policy Institute charge that it has led to the loss of some 850,000 U.S. manufacturing jobs, while proponents such as the U.S. Chamber of Commerce claim the trade growth has added a net 5 million jobs in the United States.   The non-partisan Congressional Research Service concluded that NAFTA has had only a small positive effect on U.S. growth, but has helped U.S. manufacturers become more competitive due to more efficient supply chains.      A renegotiated NAFTA could, ironically, end up borrowing key elements from the TPP to stiffen provisions on environment, labor and digital economy standards, trade experts said. Mexico and Canada have already agreed in the TPP to “fully enforceable” labor and environmental improvements, meaning that punitive duties could be imposed on countries that don’t comply — a major step-up from NAFTA. TPP also included provisions governing e-commerce and cross-border data flows — sectors that barely existed as NAFTA was negotiated in the early 1990s — to better protect intellectual property and ensure a free and open internet. Officials in all three countries say NAFTA needs modernization in this area. Trump economic advisers Peter Navarro and Wilbur Ross have suggested, however, that the TPP environmental, health and safety standards aren’t strong enough.  In an economic white paper and various opinion pieces, Navarro, a University of California-Irvine business professor and Ross, a billionaire private equity investor who is being considered by Trump to lead the Commerce Department, said they want future U.S. trade deals to include “prompt triggers and automatic renegotiation if trade gains are not distributed fairly.” They also want “ironclad sanctions” against currency manipulation, and “zero tolerance” for intellectual property theft. “In any negotiation or renegotiation, our guiding principle should be this: Enter into a free trade agreement only if it both increases total trade and reduces our trade deficit,” they wrote. politicsNews
trump bafta revamp would require concessions may borrow tppwashington reuters donald trump plan negotiate north american free trade agreement bafta make lot better workers would street administration canada mexico prepare list demands could require difficult concessions the bafta trade deals became lightning rods voter anger industrial heartland states swept trump power month trump monday vowed file notice intent quit trade deal first day office pledged leave bafta improved liking but said little improvements wants apart halting migration factories jobs mexico trade experts academics government officials say canada mexico would also seek tough concessions bafta rate would extremely difficult alter and negotiation would likely take several years in negotiation one side come requests side going expect concessions said wendy cutter former deputy trade representative user we need know going ask when cutter helped negotiate stalled trade deal south korea user concessions automakers expense longer steep korean pork tariffs allowing korea largely maintain health care reimbursement system favors domestic generic drugmakers trump campaign called bafta worst trade deal ever threatened levy tariff autos goods would hard time raising tariffs without scrapping agreement trade experts say there precedent free trade negotiations one side raising tariffs said chad born senior fellow peterson institute international economics washington if workers expensive mexican workers way level playing field things raise costs mexico born said negotiating stronger environmental labor protections would one way would increase manufacturing costs country like mexico the trump transition leader trade dan dimicco declined reuters requests comment dimicco consideration trump top trade negotiator former chief executive steel giant nuco long fought protections unfairly traded imports in youtube video message published monday trump vowed quit partnership tpp proposed trade bloc although tpp terms settled year ago pact never taken republican leaders congress due part rhetoric presidential campaign calling potential disaster country trump said administration would instead negotiate fair bilateral trade deals bring jobs industry back onto american his comments would appear snuff hopes among tpp countries pact championed president barack obama could revived new administration mexican president enrique pena niet said pacific rim summit saturday would willing discuss bafta trump modernize treaty negotiate existing provisions he said modernization could include adding environmental labor provisions contemplated bafta negotiated early canadian prime minister justin trudeau met pena niet spec sidelines said keeping options open trade discussions but bafta reopened canada insist negotiation bring end dispute canadian exports softwood lumber said david macnaughton canada ambassador united states producers claim canadian wood unfairly subsidized comes federal lands threatened seek billions dollars tariffs canadian officials say would make mockery free trade for mexico part concessions would favor industrial goods could met demands increase import quotas mexican sugar protections mexico potato crop and mexico canada would likely demand greater access compete public sector procurement largely protected buy america laws a major trump administration infrastructure spending program would make entering target cutter said since bafta enacted total trade canada mexico quadruple trillion year combined goods trade deficit canada mexico grown billion billion graphic showing trend trade deficit imports bafta effect jobs disputed critics economic policy institute charge led loss manufacturing jobs proponents chamber commerce claim trade growth added net million jobs united states the congressional research service concluded bafta small positive effect growth helped manufacturers become competitive due efficient supply chains a negotiated bafta could ironically end borrowing key elements tpp stiff provisions environment labor digital economy standards trade experts said mexico canada already agreed tpp fully enforceable labor environmental improvements meaning punitive duties could imposed countries comply major bafta tpp also included provisions governing data flows sectors barely existed bafta negotiated early better protect intellectual property ensure free open internet officials three countries say bafta needs modernization area trump economic advisers peter navarro wilbur ross suggested however tpp environmental health safety standards strong enough in economic white paper various opinion pieces navarro university business professor ross billionaire private equity investor considered trump lead commerce department said want future trade deals include prompt triggers automatic negotiation trade gains distributed they also want ironclad sanctions currency manipulation zero tolerance intellectual property theft in negotiation negotiation guiding principle enter free trade agreement increases total trade reduces trade deficit wrote politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Trump's NAFTA revamp would require concessions, may borrow from TPPWASHINGTON (Reuters) - President-elect Donald Trump’s plan to renegotiate the North American Free Trade Agreement (NAFTA) to make it “a lot better” for U.S. workers would not be a one-way street for his administration, as Canada and Mexico prepare their own list of demands that could require difficult U.S. concessions. The 22-year-old NAFTA and other trade deals became lightning rods for voter anger in the U.S. industrial heartland states that swept Trump to power this month.  Trump — who on Monday vowed to file notice of his intent to quit an Asia-Pacific trade deal on his first day in office — has pledged to leave NAFTA if it can’t be improved to his liking. But he has said little about what improvements he wants, apart from halting the migration of U.S. factories and jobs to Mexico. Trade experts, academics and government officials say Canada and Mexico would also seek tough concessions and that NAFTA’s zero-tariff rate would be extremely difficult to alter. And any renegotiation would likely take several years. “In a renegotiation, one side can come in with requests, but the other side is going to expect concessions,” said Wendy Cutler, a former deputy U.S. Trade Representative (USTR). “We need to know what we’re going to ask for and what we can give.” When Cutler helped renegotiate a stalled trade deal with South Korea in 2010, USTR won concessions for U.S. automakers, but at the expense of a longer phase-out on steep Korean pork tariffs and allowing Korea to largely maintain a health care reimbursement system that favors domestic generic drugmakers. Trump, who during the campaign called NAFTA the “worst trade deal ever” and threatened to levy a 35-percent tariff on Mexican-assembled autos and other goods, would have a hard time raising U.S. tariffs without scrapping the agreement, trade experts say. “There is no precedent in free trade negotiations for one side raising tariffs more than the other,” said Chad Bown, a senior fellow at the Peterson Institute of International Economics in Washington. “If U.S. workers are more expensive than Mexican workers, the only way to level the playing field is to do things that raise costs in Mexico,” Bown said.   Negotiating stronger environmental and labor protections would be one way of doing this, as it would increase manufacturing costs in a lower-income country like Mexico. The Trump transition leader for trade, Dan Dimicco, declined Reuters’ requests for comment. DiMicco, who is under consideration to be Trump’s top trade negotiator, is a former chief executive of steel giant Nucor Corp. who has long fought for protections against unfairly traded imports. In a YouTube video message published on Monday, Trump vowed to quit the Trans-Pacific Partnership (TPP), a proposed 12-country Pacific-rim trade bloc. Although the TPP terms were settled more than a year ago, the pact was never taken up by U.S. Republican leaders in Congress due in part to anti-free-trade rhetoric in the presidential campaign.      Calling it a “a potential disaster for our country”, Trump said his administration would instead negotiate “fair, bilateral trade deals that bring jobs and industry back onto American shores.”  His comments would appear to snuff out any hopes among other TPP countries that the pact championed by President Barack Obama could be revived under the new administration. Mexican President Enrique Pena Nieto said at a Pacific Rim summit on Saturday that he would be willing to discuss NAFTA with Trump to “modernize” the treaty — but not renegotiate existing provisions. He said that modernization could include adding environmental, labor and other provisions that weren’t contemplated when NAFTA was being negotiated in the early 1990s. Canadian Prime Minister Justin Trudeau, who met with Pena Nieto on the APEC sidelines, said he was “keeping our options open” on trade discussions with the U.S. president-elect.    But if NAFTA is reopened, Canada will insist that any renegotiation bring an end to a decades-old dispute over Canadian exports of softwood lumber, said David MacNaughton, Canada’s ambassador to the United States. U.S. producers claim the Canadian wood is unfairly subsidized because it comes from federal lands and have threatened to seek billions of dollars in tariffs, which Canadian officials say would make a “mockery” of free trade. For Mexico’s part, any concessions that would favor U.S. industrial goods could be met with demands to increase U.S. import quotas for Mexican sugar and protections for Mexico’s potato crop. And both Mexico and Canada would likely demand greater access to compete for U.S. public sector procurements, now largely protected by “Buy America” laws. A major Trump administration infrastructure spending program would make this a more enticing target, Cutler said. Since NAFTA was enacted, total U.S. trade with Canada and Mexico has quadrupled to $1.3 trillion a year, but the U.S. combined goods trade deficit with Canada and Mexico has grown from $9.1 billion in 1993 to $76.2 billion in 2015. (Graphic showing trend in U.S. trade deficit, imports: tmsnrt.rs/2gajLSa) NAFTA’s effect on U.S. jobs is disputed. Critics such as the left-leaning Economic Policy Institute charge that it has led to the loss of some 850,000 U.S. manufacturing jobs, while proponents such as the U.S. Chamber of Commerce claim the trade growth has added a net 5 million jobs in the United States.   The non-partisan Congressional Research Service concluded that NAFTA has had only a small positive effect on U.S. growth, but has helped U.S. manufacturers become more competitive due to more efficient supply chains.      A renegotiated NAFTA could, ironically, end up borrowing key elements from the TPP to stiffen provisions on environment, labor and digital economy standards, trade experts said. Mexico and Canada have already agreed in the TPP to “fully enforceable” labor and environmental improvements, meaning that punitive duties could be imposed on countries that don’t comply — a major step-up from NAFTA. TPP also included provisions governing e-commerce and cross-border data flows — sectors that barely existed as NAFTA was negotiated in the early 1990s — to better protect intellectual property and ensure a free and open internet. Officials in all three countries say NAFTA needs modernization in this area. Trump economic advisers Peter Navarro and Wilbur Ross have suggested, however, that the TPP environmental, health and safety standards aren’t strong enough.  In an economic white paper and various opinion pieces, Navarro, a University of California-Irvine business professor and Ross, a billionaire private equity investor who is being considered by Trump to lead the Commerce Department, said they want future U.S. trade deals to include “prompt triggers and automatic renegotiation if trade gains are not distributed fairly.” They also want “ironclad sanctions” against currency manipulation, and “zero tolerance” for intellectual property theft. “In any negotiation or renegotiation, our guiding principle should be this: Enter into a free trade agreement only if it both increases total trade and reduces our trade deficit,” they wrote. politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: trump bafta revamp would require concessions may borrow tppwashington reuters donald trump plan negotiate north american free trade agreement bafta make lot better workers would street administration canada mexico prepare list demands could require difficult concessions the bafta trade deals became lightning rods voter anger industrial heartland states swept trump power month trump monday vowed file notice intent quit trade deal first day office pledged leave bafta improved liking but said little improvements wants apart halting migration factories jobs mexico trade experts academics government officials say canada mexico would also seek tough concessions bafta rate would extremely difficult alter and negotiation would likely take several years in negotiation one side come requests side going expect concessions said wendy cutter former deputy trade representative user we need know going ask when cutter helped negotiate stalled trade deal south korea user concessions automakers expense longer steep korean pork tariffs allowing korea largely maintain health care reimbursement system favors domestic generic drugmakers trump campaign called bafta worst trade deal ever threatened levy tariff autos goods would hard time raising tariffs without scrapping agreement trade experts say there precedent free trade negotiations one side raising tariffs said chad born senior fellow peterson institute international economics washington if workers expensive mexican workers way level playing field things raise costs mexico born said negotiating stronger environmental labor protections would one way would increase manufacturing costs country like mexico the trump transition leader trade dan dimicco declined reuters requests comment dimicco consideration trump top trade negotiator former chief executive steel giant nuco long fought protections unfairly traded imports in youtube video message published monday trump vowed quit partnership tpp proposed trade bloc although tpp terms settled year ago pact never taken republican leaders congress due part rhetoric presidential campaign calling potential disaster country trump said administration would instead negotiate fair bilateral trade deals bring jobs industry back onto american his comments would appear snuff hopes among tpp countries pact championed president barack obama could revived new administration mexican president enrique pena niet said pacific rim summit saturday would willing discuss bafta trump modernize treaty negotiate existing provisions he said modernization could include adding environmental labor provisions contemplated bafta negotiated early canadian prime minister justin trudeau met pena niet spec sidelines said keeping options open trade discussions but bafta reopened canada insist negotiation bring end dispute canadian exports softwood lumber said david macnaughton canada ambassador united states producers claim canadian wood unfairly subsidized comes federal lands threatened seek billions dollars tariffs canadian officials say would make mockery free trade for mexico part concessions would favor industrial goods could met demands increase import quotas mexican sugar protections mexico potato crop and mexico canada would likely demand greater access compete public sector procurement largely protected buy america laws a major trump administration infrastructure spending program would make entering target cutter said since bafta enacted total trade canada mexico quadruple trillion year combined goods trade deficit canada mexico grown billion billion graphic showing trend trade deficit imports bafta effect jobs disputed critics economic policy institute charge led loss manufacturing jobs proponents chamber commerce claim trade growth added net million jobs united states the congressional research service concluded bafta small positive effect growth helped manufacturers become competitive due efficient supply chains a negotiated bafta could ironically end borrowing key elements tpp stiff provisions environment labor digital economy standards trade experts said mexico canada already agreed tpp fully enforceable labor environmental improvements meaning punitive duties could imposed countries comply major bafta tpp also included provisions governing data flows sectors barely existed bafta negotiated early better protect intellectual property ensure free open internet officials three countries say bafta needs modernization area trump economic advisers peter navarro wilbur ross suggested however tpp environmental health safety standards strong enough in economic white paper various opinion pieces navarro university business professor ross billionaire private equity investor considered trump lead commerce department said want future trade deals include prompt triggers automatic negotiation trade gains distributed they also want ironclad sanctions currency manipulation zero tolerance intellectual property theft in negotiation negotiation guiding principle enter free trade agreement increases total trade reduces trade deficit wrote politicsnews