NAFTA negotiations expected to come soon

By KALEA HALL

khall@vindy.com

YOUNGSTOWN

Changes to the North American Free Trade Agreement are to come, but they are not expected to be as extensive as talked about during President Donald J. Trump’s campaign.

“The administration’s real fight is with China,” said Dan Ujczo, counsel and cross-border business development director for the law firm Dickinson Wright, PLLC.

Ujczo was in Youngstown on Tuesday for a NAFTA-Canada Seminar hosted by the Ohio Small Business Development Center Export Assistance Network and Youngstown State University.

Ujczo said since Trump took office, the administration has changed its tone on NAFTA changes, especially with the automotive supply chain.

Ujczo foresees preliminary discussions on NAFTA changes to take place soon and formal negotiations will begin in early fall.

During his campaign, Trump discussed renegotiating NAFTA and suggested placing a 35 percent tariff on auto imports from Mexico. NAFTA eliminated most tariffs on trade between Mexico, Canada and the U.S.

Ujczo explained that Asia is where there’s more trade concern.

“I think anybody sourcing components from Asia will need to look at repositioning,” he said.

Ujczo and Mousa Kassis, director of the Ohio SBDC Export Assistance Network, both are hopeful for improvements to NAFTA to help trade with Canada, which is the nation’s and Ohio’s largest trade partner.

“To tear up the whole agreement would be a concern,” Kassis said. “The expectation would be to renegotiate not to tear it up.”

The meeting was attended by businesses involved in Ohio SBDC Export Assistance Network.

The network has a 2017 Ohio Export Internship Program, for companies looking to export or to improve their export initiative. They are able to apply for the program through April 15.

Companies will be matched with students from Ohio universities, including YSU, to help them prepare or improve their exporting. The internship program runs from May 15 through Aug. 11. Companies can receive up to $3,600 in reimbursement for intern wages.

For more information about the program, go to eip.development.ohio.gov.