Risks behind the new NAFTA

Subscribe to POLITICO Money on Apple Podcasts here. | Subscribe via Stitcher here. The new trade deal between the United States, Mexico and Canada improves on NAFTA in many ways but presents potential risks to automakers, senior White House economic adviser Larry Kudlow acknowledged in an interview featured on this week’s POLITICO Money podcast. “I know there is some grousing around,” Kudlow said Tuesday of concerns raised in the auto industry that the increased requirements for North American content in cars and trucks could drive up prices or force production overseas. “The cost issues, let’s look at it, I’ll say a maybe. It’s very important to the president though.” Kudlow, director of the National Economic Council, added that content and wage provisions in the auto section of the new agreement were a “must” for President Donald Trump. “We didn’t want to lose any more jobs. This was an America first deal.” Kudlow added that if the requirement for autos to have 75 percent North American content to receive duty-free status creates problems in the industry, the White House would look at it again. “I think it’s going to work out fine,” he said. “I may be wrong and we will look at it down the road.” In the interview with POLITICO, which took place at the Securities Industry and Financial Markets Association meeting in Washington, Kudlow also said the U.S. is willing to engage in “serious” talks with China to avoid a further escalation of the current trade battle but that China’s responses so far have been “unsatisfactory.” Kudlow said new U.S.-China talks could take place at the upcoming Group of 20 meeting in Buenos Aires, Argentina. Kudlow also weighed in on the fight over Judge Brett Kavanaugh’s nomination to the Supreme Court, saying Kavanaugh has been treated poorly. “I don’t think the process has been very fair,” Kudlow said. “I think Mr. Kavanaugh has been treated very unfairly and so has his family. And it could have been done, investigations and so forth, in a much more orderly way without the personalization.” source: https://www.politico.com/story/2018/10/03/money-podcast-kudlow-nafta-825714 #Headlines by: bwhite@politico.com (Ben White)

Original Post: https://www.politico.com/story/2018/10/03/money-podcast-kudlow-nafta-825714