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Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.

 

After NAFTA fight, Trump threatens another trade battle with Central America

Thursday, January 10, 2019 > 10:40:00
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www.mcclatchydc.com

WASHINGTON 

Now that the Trump administration has revamped the North American Free Trade Agreement, it is taking a look at kicking key countries out of its sister pact, the Central American Free Trade Agreement.

Trump officials are taking a very close look at the 2005 pact signed with six Latin American nations to see if they can block Nicaragua, the Dominican Republic and El Salvador from keeping preferential access to U.S. markets without disturbing the rest of the agreement.

“We are very concerned with Nicaragua’s move toward authoritarianism, and El Salvador’s and Dominican Republic’s questionable ties with China,” the official said. “As the United States has made clear, we will not allow our trade agreements, including CAFTA-DR, to become back doors to benefit non-market economies and repressive actors in the region.”

Eliminating the three countries from CAFTA or CAFTA-DR, as it’s best known, would not necessarily block them from selling goods to the United States, but they would be subject to higher tariffs that were in place before the 2005 agreement was signed.


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