Trump Administration’s possible route on NAFTA negotiations

Trump Administration’s possible route on NAFTA

A widely circulated draft letter, from the Trump Administration purportedly intended to be sent to Congress, indicates the administration intends to initiate negotiations related to the North American Free Trade Agreement (NAFTA).

1000

Related content

According to a version of the draft letter [PDF 512 KB]—obtained informally and thus is not official and must not be relied upon—key observations relating to the trade of goods, among more than 40 goals outlined, include:

  • Reducing non-tariff barriers and broadening market access for U.S. textile, apparel, and agricultural exports
  • “Leveling the playing field” on tax treatment
  • Modifying rules of origin for preferential tariff treatment
  • Improving trade facilitation and enforcement between customs authorities
  • Establishing rules concerning government procurement consistent with U.S. “Buy American” policies and laws
  • Seeking safeguard measures to allow temporary revocation of tariff preferences if imports cause serious injury to domestic industry
  • Eliminating Chapter 19 dispute settlement mechanism of antidumping and countervailing duty determinations

KPMG observation

Trade professionals have noted that in the unofficial draft version of the letter, the administration says it would seek, through the negotiations, to “improve competitive opportunities for exports of US goods” and that the administration would be seeking “rules of origin that ensure that the Agreement supports production and jobs in the United States” as well as “provisions to address circumvention that ensure that preferential duty rates under the agreement apply only to goods eligible to receive such treatment.” Some view this draft letter as demonstrating that the administration would focus on enforcement in the negotiations.  

 

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.