This May, president Donald Trump put tariffs on steel and aluminum, much to the disapproval of trade partners like Mexico and Canada. This was the result of a section 232 investigation, which examined the effect of the country’s imports on its national security. The article “Mexico Should Seek Tariff Exclusion Before Closing NAFTA:Steel Lobby, is relevant to free trade because these trade partners are working to renegotiate the North American Free Trade Agreement.
After President Trump placed these tariffs, Mexico and Canada placed tariffs on U.S. products. They finally announced on Monday allowing Canada to update NAFTA, which adds up to $1 trillion in annual trade between Mexico, Canada, and the U.S. The Mexican steel industry CANECERO feels that Mexico should solve the issues created by the section 232 investigation before accepting the renegotiation of NAFTA.
This article is significant because until the problems between these countries are solved, these trade relationships will still be strained. These tariff problems should be solved before Mexico renegotiates NAFTA.
Reuters. “Mexico Should Seek Tariff Exclusion Before Closing NAFTA: Steel Lobby.” The New York Times, 29 Aug. 2018, https://www.nytimes.com/reuters/2018/08/29/business/29reuters-trade-nafta-mexico-steel.html