Obstacles to new NAFTA deal include process for resolving disputes, ‘rules of origin’ for autos

Negotiators from Canada, Mexico and the United States have begun their seventh round of discussions for a new, or modernized, North American Free Trade Agreement. And while the dissolution of NAFTA seemed very likely several months ago, negotiations are still alive. To this point, results of the trilateral discussions have been mixed — consensus on some changes, but continued disagreement on issues such as dispute resolution and “rules of origin” that could ultimately block a new deal from being reached. According to Scotty Greenwood, CEO of the Canadian American Business Council, the big question right now is this: “Do the political leaders want to come to an agreement by late March?” If not, NAFTA discussions may halt because of Mexico’s pending presidential election. Greenwood sees three possible scenarios.1) Reach an agreement in the areas in most need of change, declare that NAFTA has been modernized, and conclude discussions. 2) Announce that there are no plans to tear up NAFTA, but that the agreement needs a comprehensive review and update. Under this scenario, negotiators would continue at their own pace. 
3) The United States withdraws from NAFT0317-MI-brownfieldsA and tries to reach separate bilateral trade agreements.