Car industry sees 'lose-lose' outcome in Trump's Nafta changes

"I think it's highly likely at the end of round 4 when you see things like automotive rule of origin, supply management the talking about a sunset provision, meaning that NAFTA would terminate after five years automatically unless Congress reauthorized it, those are things that will cause Canada and Mexico to at the very least call a timeout to take these issues back and consider their next move", he explained.

And while Higgins routinely votes against trade agreements, arguing they are often too broad, too vague and skewed against the American worker, he acknowledged that the Buffalo area would likely suffer if the United States did not have a trade deal with its neighbor to the north. Responding to criticism from the group last week, a spokesperson for the Office of the U.S. Trade Representative said, "The president has been clear that NAFTA has been a disaster for many Americans, and achieving his objectives requires substantial change".

During his presidential campaign and early in his term, Trump fixated on the auto industry and carmakers investing in Mexico, criticizing companies including Ford Motor Co., General Motors Co. and Toyota Motor Corp.

"It's possible we won't be able to make a deal, and it's possible that we will", he said.

"I happen to think that NAFTA will have to be terminated if we're going to make it good".

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WASHINGTON-Donald Trump welcomed Prime Minister Justin Trudeau to the White House on Oct. 11 by hinting at the possibility of a free trade deal directly with America's northern neighbour, should ongoing NAFTA talks collapse.

Trudeau insisted that NAFTA talks kicked off in "good faith" Wednesday, although Trump has refused to commit to the pact.

Trudeau explained "The attempts by Boeing to put tens of thousands of workers out of work across Canada is not something we look on positively, and I certainly mentioned this was a block to us making any military procurements from Boeing". Asked if NAFTA is dead, Trump said, "We'll see what happens". He plans to visit Mexico City after his stop in Washington. Trump administration officials have promised to cut the surplus.

"We all want this agreement to be a model for future trade deals", Brady said.

U.S. Chamber of Commerce President Thomas Donohue called Trump's proposals "poison pills" for Canada and Mexico, which could result in the death of the agreement, Reuters reported.

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US commerce secretary Wilbur Ross, one of Trump's top trade advisers, downplayed the chances that a Nafta termination would become necessary.

The Canadian leader's administration is negotiating with Australia to buy used F-18 fighter jets and parts to partially replace its aging fleet. The offering a one-for-one arrangement, when the ratio of its market to Canada's is 10 to 1, Ross said: "It's very fair". "So we are your biggest customer", he told lawmakers.

US-based Boeing alleges that Bombardier gets unfair subsidies from the Canadian and British governments.

"When North America wins, America wins and the American people win as well", Mr. Brady said.

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