NAFTA Watch

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Michael J. Barrie at (302) 442-7068 or [email protected]. Marc S. ... David M. Krueger at (216) 363-4683 or dkruege
March 2018

NAFTA Watch Updates from Benesch on the North American Free Trade Agreement NAFTA Watch Vol. 13 NAFTA Renegotiation Part 7: Speculation Abound

Kevin Capuzzi

Paul Obszanski

This publication is our thirteenth 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”). The seventh round of negotiations among U.S., Mexican, and Canadian officials is currently underway in Mexico City. An eighth round is now contemplated for late March or early April in Washington, D.C. While the current negotiations are still ongoing and, thus, there is little in the way of updates at this time, the abrupt return to Washington of the U.S.’s lead negotiator

on one of the most contentious issues in debate—the automobile rules-of-origin policies—has left many speculating. Jason Bernstein, the U.S. negotiator overseeing the automobile rules-of-origin policies, unexpectedly departed Mexico City in the middle of the current round of negotiations to reportedly meet with industry consultants. Regular readers of this newsletter will recall that, in our last installment, we noted that there were positive discussions regarding automobile rules-of-origin policies during the sixth round of negotiations in Montreal. Although no resolution was ultimately reached, those positive discussions coupled with Bernstein’s sudden return to Washington to meet with industry consultants, have left some pondering whether a deal on rules-of-origin policies is in the works. If so, one of the most provocative and decisive issues since NAFTA negotiations began over a year ago could be set aside to work on finalizing a new agreement. Nevertheless, we, too, are speculating, so it is best to wait and see how the Mexico City negotiations conclude as well as developments that may occur

during informal sessions leading up to the next round of negotiations in Washington, D.C. What is not speculation, however, are the quickly approaching Mexican and U.S. elections. The Mexican election, which will occur on July 1, includes a race for presidency, as well as the election of 500 members of the Chamber of Deputies and 128 members of the Senate. With the potential for such a dramatic political shift, representatives from all three countries are motivated to act quickly. Moreover, with the U.S. elections in November, if a deal if not done by summer, negotiations will likely extend late into 2018. Although U.S. Trade Representative Robert Lighthizer is hopeful that major breakthroughs will soon occur, current progress has been unarguably slow. All would likely agree, however, that slow progress is better than no progress at all. 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.

www.beneschlaw.com

March 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] 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 (312) 212-4981 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

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