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Nafta in trade and security talks | |
(about 10 hours later) | |
Talks between the US, Mexico and Canada are under way in Quebec as they aim to discuss trade and security. | |
Plans to modernise the North American Free Trade Agreement (Nafta) are on the agenda as well as market volatility. | |
More than 2,000 people turned up to protest on Monday, with critics fearing that a stronger Nafta would come at the cost of national sovereignty. | |
But high levels of security and police in riot gear has prevented protestors from disrupting the event's first day. | |
In the United States opponents have argued that Nafta has undermined manufacturing jobs, despite generating $700bn in trilateral trade. | |
Police have blocked demonstrations within 15 miles of the summit complex. | Police have blocked demonstrations within 15 miles of the summit complex. |
Partnership | Partnership |
US President George W Bush, Mexico's President Felipe Calderon and Canada's Prime Minister Stephen Harper are meeting in Montebello, a 90-minute drive from Ottawa. | |
Demonstrators marched to the Canadian Parliament on Sunday in protest against the Iraq war, globalisation and the escalating battle for control of the resource-rich Arctic region. | Demonstrators marched to the Canadian Parliament on Sunday in protest against the Iraq war, globalisation and the escalating battle for control of the resource-rich Arctic region. |
NAFTA FACTS Started in 1994Allows free trade between US, Canada and MexicoTrade between partners grew at over 10% per yearSide agreements regulate environment, labourCritics say 1m US manufacturing jobs were lost | NAFTA FACTS Started in 1994Allows free trade between US, Canada and MexicoTrade between partners grew at over 10% per yearSide agreements regulate environment, labourCritics say 1m US manufacturing jobs were lost |
Maude Barlow, from the Council of Canadians pressure group, said Nafta's trade and security partnership was "a blueprint for the wrong model in North America". | Maude Barlow, from the Council of Canadians pressure group, said Nafta's trade and security partnership was "a blueprint for the wrong model in North America". |
"The whole world is rejecting this notion of unlimited growth," she said. | "The whole world is rejecting this notion of unlimited growth," she said. |
Efforts to update Nafta, a central plank of a broad-ranging Security and Prosperity Partnership agreed by the trio in 2005, will be central to the talks. | Efforts to update Nafta, a central plank of a broad-ranging Security and Prosperity Partnership agreed by the trio in 2005, will be central to the talks. |
Critics of Nafta and other free trade deals argue that they have destroyed jobs in poorer countries and damaged the environment. | Critics of Nafta and other free trade deals argue that they have destroyed jobs in poorer countries and damaged the environment. |
Trade between the three partners has increased by more than 10% a year since the agreement, which paved the way for tariffs to be cut on key products, was ratified in 1994. | Trade between the three partners has increased by more than 10% a year since the agreement, which paved the way for tariffs to be cut on key products, was ratified in 1994. |
Protectionist pressures | Protectionist pressures |
Growing protectionist sentiment in Washington has meant Nafta and other free trade agreements have come under growing scrutiny. | Growing protectionist sentiment in Washington has meant Nafta and other free trade agreements have come under growing scrutiny. |
Leading Democrat Presidential candidates have all attacked the agreement as unfair because US labour laws more strictly enforced than those of its trading partners. | Leading Democrat Presidential candidates have all attacked the agreement as unfair because US labour laws more strictly enforced than those of its trading partners. |
There is also unease about Nafta in Mexico with farmers opposed to the imminent liberalisation of the maize industry to corn imports from the US. | There is also unease about Nafta in Mexico with farmers opposed to the imminent liberalisation of the maize industry to corn imports from the US. |
Other issues on the agenda include co-operation over security and energy issues, global economic uncertainty and the need for agreed regional standards on product safety following recalls of Chinese-made goods in recent months. | Other issues on the agenda include co-operation over security and energy issues, global economic uncertainty and the need for agreed regional standards on product safety following recalls of Chinese-made goods in recent months. |
"I am quite confident that they will be having a wide-ranging discussion on the economy," said a Canadian official. | "I am quite confident that they will be having a wide-ranging discussion on the economy," said a Canadian official. |