This week’s announced deal related to Brexit include a set of initial agreements that will now allow negotiations to advance toward specific trade issues. Industry supply chain teams should have some cautious sense of relief but must remain tune-in to ongoing developments and implications.
Global Trade Issues
Trade representatives of Canada, Mexico and the United States completed another five days of NAFTA re-negotiation talks this week which were hosted by Mexico. After this fifth round, the overall mood of these talks remains far less optimistic for a successful overall outcome.
This week, United States Secretary of Commerce Wilbur Ross spoke to attendees of The Wall Street Journal’s CEO Council indicating that the Trump Administration’s ongoing hardball strategy regarding ongoing North America Free Trade Agreement (NAFTA) talks comes from perceived leverage over Canada and Mexico.
The fourth round of the North America Free Trade Agreement (NAFTA) renegotiation talks kicked-off this week and the prospects for reaching some consensus agreement on major NAFTA trade principles by the end of this year are now looking to be rather challenging. Once more, various industry and business interests are growing more worrisome as to U.S. objectives in these talks, as well as their potential implications.
This week, a significant development occurred in the commercial aircraft sector, one that will likely have geo-political and trade policy reprisal implications that could likely impact aerospace and other industry supply chains down the road.
The latest political firestorm surrounding the Trump presidency involves the aftermath of the rioting and act of domestic terrorism that occurred in Charlottesville Virginia, pitting white supremacists against counter-protesters. The President now indicated that he has decided to disband both the President’s American Manufacturing Council and the President’s Strategy and Policy Forum.