October 12, 2017 4:15 pm

United States begins dropping drastic proposals at NAFTA talks, say more are coming

WATCH: Wed, Oct 11: Prime Minister Justin Trudeau met with U.S. President Donald Trump in Washington as the fourth round of NAFTA negotiations get underway. Mike Le Couteur reports.

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The United States has begun dropping its bombshell proposals at the negotiating table in NAFTA talks, which are now entering their most difficult phase.

READ MORE: Expect to pay more for lots of stuff if Donald Trump dissolves NAFTA

Sources say U.S. negotiators presented on Wednesday evening a so-called termination clause that would kill the pact after five years if the three member countries fail to renew it.

The next big drop could occur Friday: the group handling rules for auto parts is gathering and it’s expected the U.S. will level demands seen as non-starters by the other parties.

This is after the U.S. at the last negotiating round proposed a rule that would seriously increase the use of Buy American provisions for public works contracts. Canada, Mexico and industry groups have blasted some of the American proposals as impractical – even impossible.

U.S. Commerce Secretary Wilbur Ross has hinted that the toughest proposals are coming, though he says he remains optimistic the parties can achieve a deal.

 

© 2017 The Canadian Press

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