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As the fourth round of the renegotiation of the North American Free Trade Agreement (NAFTA) with Canada and Mexico drew to a close on Oct.17, the parties opted to push back the starting date of the fifth round until mid-November to allow the negotiators more time to work on the most controversial issues that remain to be addressed. This article explains the issues.
As the fourth round of the renegotiation of the North American Free Trade Agreement (NAFTA) with Canada and Mexico drew to a close on Oct.17, the parties opted to push back the starting date of the fifth round until mid-November to allow the negotiators more time to work on the most controversial issues that remain to be addressed. The parties appear to be worlds apart in terms of coming to an agreement on such issues as the rules of origin, a possible five-year sunset provision, the Chapter 19 dispute resolution mechanism, and key provisions involving the agriculture and textile provisions of the Agreement, to name a few. Corporate counsel for U.S. companies that are doing business in Canada and Mexico are urged to continue following these negotiations closely, and assess how proposed changes to the NAFTA could impact their products, operations and supply chains. This article provides a summary and timeline of the NAFTA renegotiation process to date, as well as a forecast for the developments that are likely to come.
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