Trump team says it won't support border adjustment tax

The incoming Trump administration is ruling out an across-the-board border tax as it prepares a sweeping new trade agenda that includes renegotiating the North American free-trade agreement with Canada and Mexico.

... Steven Mnuchin, treasury secretary nominee, outlined the new administration’s priorities on economic matters during a day-long confirmation hearing before the U.S. Senate finance committee.

The former banking executive and investment manager helped craft Mr. Trump’s economic platform and will play a central role in working with Congress to turn the new president’s campaign rhetoric into action.

The cabinet nominee made clear that the president.. doesn’t support plans advocated by Republicans in Congress that would impose a border-adjustment tax on imports as part of a corporate tax-reform package. The Republican tax plan has raised widespread concerns among Canadian exporters.

“When he’s referred to a border tax, he’s referred to a small number of companies that have moved their jobs or are moving their jobs, putting products back into the United States, and taxing them,” said Mr. Mnuchin in describing Mr. Trump’s position. “So he has in no way contemplated a broad 35-per-cent border tax. That couldn’t be further from anything he’d possibly consider.”...

On renegotiating NAFTA, he said existing work on the proposed Trans-Pacific Partnership – a 12-country deal that included the three NAFTA members and was dismissed by Mr. Trump – would be used as a “starting point” for the discussions...

The singular focus on Mexico in the context of NAFTA is in line with signals Canadian officials have received privately from Trump officials that Mexico is the focus of the administration’s desire to renegotiate the deal...

This was excerpted from 19 January 2017 article by The Globe and Mail.