NAFTA Renegotiation Part 5 [PDF]

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Jan 23, 2018 - fireworks and hopefully consensus on the major issues will begin to be reached. As we previously noted, if an agreement is not reached by the ...
January 2018

NAFTA Watch Updates from Benesch on the North American Free Trade Agreement NAFTA WATCH VOL. 11 NAFTA Renegotiation Part 5: The Year Ends Without Any Major Agreements

Kevin Capuzzi

Paul Obszanski

This publication is our eleventh installment in a series designed to provide our clients in the manufacturing, transportation and logistics, and related industries with monthly updates on any action taken by the Trump Administration, Congress, and/or federal governmental agencies with respect to the North American Free Trade Agreement (“NAFTA”). In our previous newsletter, we noted that representatives of the NAFTA countries would be meeting in Washington, D.C. in mid-December for unofficial negotiations.

Those negotiations concluded on December 15, 2017, without any significant agreement on the major issues, such as automobile rules of origin, dispute resolution, and sunset clauses— all of which have been discussed at length in our prior newsletters. While agreement was reached on some minor and ancillary matters, such as environment standards, the major issues are poised to carry into 2018, when formal negotiations commence after a holiday break. The next round of formal negotiations will occur in Montreal on January 23, 2018. As talks return to Canada, Canadian Prime Minister Trudeau recently announced that he would walk away from NAFTA, rather than agree to a deal that is bad for Canadians. Meanwhile, in the United States, President Trump continues to indicate his willingness to withdraw from NAFTA if U.S. demands are not met. Against that backdrop, the Montreal

negotiations are likely to bring some fireworks and hopefully consensus on the major issues will begin to be reached. As we previously noted, if an agreement is not reached by the end of March, and the United States does not start withdrawal proceedings, the parties would likely agree to postpone negotiations until late 2018 to allow for Mexican and U.S. elections. Benesch will continue to monitor negotiations to provide monthly updates to our clients in the manufacturing, transportation and logistics, and related industries of any developments.

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January 2018

For more information Contact KEVIN CAPUZZI at kcapuzzi@ beneschlaw.com or (302) 442-7063, or PAUL OBSZANSKI at [email protected] or (317) 685-6145. KEVIN CAPUZZI is an associate with the firm’s Litigation, Insolvency & Creditors’ Rights, and Transportation & Logistics Practice Groups. He practices in the firm’s Wilmington, DE and Hackensack, NJ offices. His practice includes advising and representing motor carriers and third party logistics providers in all stages of litigation in federal and state court matters. Kevin also has extensive experience representing parties in bankruptcy court proceedings, including defending motor carriers and third party logistics providers in avoidance action litigation and navigating unique claims and related issues arising in Chapter 7, 11, and 15 bankruptcies. PAUL OBSZANSKI is an associate in the firm’s Corporate & Securities Practice Group. Paul focuses his practice on real estate and corporate matters related to mergers, acquisitions, divestitures, real estate lending, loan documentation, and related business. Paul also assists transportation clients in working with various state and federal licensing and regulatory authorities.

NAFTA Watch

Additional Information For additional information, please contact: Transportation & Logistics Practice Group Michael J. Barrie at (302) 442-7068 or [email protected] Marc S. Blubaugh at (614) 223-9382 or [email protected] Kevin M. Capuzzi at (302) 442-7063 or [email protected] Matthew D. Gurbach at (216) 363-4413 or [email protected] Jennifer R. Hoover at (302) 442-7006 or [email protected] Thomas B. Kern at (614) 223-9369 or [email protected] David M. Krueger at (216) 363-4683 or [email protected] Christopher J. Lalak at (216) 363-4557 or [email protected] Andi M. Metzel at (317) 685-6159 or [email protected] Michael J. Mozes at (614) 223-9376 or [email protected] Kelly E. Mulrane at (614) 223-9318 or [email protected] Lianzhong Pan at (86 21) 3222-0388 or [email protected] Martha J. Payne at (541) 764-2859 or [email protected] Stephanie S. Penninger at (317) 685-6188 or [email protected] Joel R. Pentz at (216) 363-4618 or [email protected] Richard A. Plewacki at (216) 363-4159 or [email protected] Matthew J. Selby at (216) 363-4458 or [email protected] Peter K. Shelton at (216) 363-4169 or [email protected] Verlyn Suderman at (312) 212-4962 or [email protected] Clare R. Taft at (216) 363-4435 or [email protected] Jonathan Todd at (216) 363-4658 or [email protected] Joseph P. Yonadi, Jr. at (216) 363-4493 or [email protected] Eric L. Zalud at (216) 363-4178 or [email protected] Labor & Employment Practice Group W. Eric Baisden at (216) 363-4676 or [email protected] Maynard Buck at (216) 363-4694 or [email protected] Joseph Gross at (216) 363-4163 or [email protected] Rick Hepp at (216) 363-4657 or [email protected] Peter Kirsanow at (216) 363-4481 or [email protected] www.beneschlaw.com

As a reminder, this Advisory is being sent to draw your attention to issues and is not to replace legal counseling. UNITED STATES TREASURY DEPARTMENT CIRCULAR 230 DISCLOSURE: TO ENSURE COMPLIANCE WITH REQUIREMENTS IMPOSED BY THE IRS, WE INFORM YOU THAT, UNLESS EXPRESSLY STATED OTHERWISE, ANY U.S. FEDERAL TAX ADVICE CONTAINED IN THIS COMMUNICATION (INCLUDING ANY ATTACHMENTS) IS NOT INTENDED OR WRITTEN TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF (i) AVOIDING PENALTIES UNDER THE INTERNAL REVENUE CODE, OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY TRANSACTION OR MATTER ADDRESSED HEREIN.