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TORONTO (Reuters) - U.S. President Donald Trump said on Saturday he would soon give formal notice to the U.S. Congress to terminate the North American Free Trade Agreement (NAFTA), giving lawmakers six months to approve a new trade deal between the United States, Mexico and Canada to replace it. Trump said that if U.S. lawmakers don’t approve the new agreement, then the three countries would revert to the rules of trade that existed before NAFTA came into effect in 1994. It is unclear if Trump has the legal power to terminate NAFTA in the way he has threatened. The opposition Democratic party will soon have a majority in the lower house of Congress and has said it wants changes to the new trade deal, known as the USMCA.

Trump’s threat raised fears that trade flows across North America could silver waves cufflinks be disrupted if Congress fails to agree on the new deal before NAFTA expires, Under the 1987 Canada-United States Free Trade Agreement, the two countries agreed to phase out most tariffs, a process that accelerated under NAFTA, The deal excluded dairy, poultry, eggs and sugar, but virtually all other tariffs were phased out by 2008, That means terminating NAFTA could have a limited impact on the movement of goods between the two countries, But some trade experts have argued that because the agreement was formally suspended when NAFTA went into effect, both governments would have to take steps to put it back into force, If the old deal is not reinstated, a vast array of goods made in the United States and Canada would be subject to tariffs and cost more..

HIGHER DUTIES IN U.S.-MEXICO TRADE. If NAFTA is terminated, goods traded between Mexico and the United States would attract “most-favored-nation” or MFN tariffs, levied under World Trade Organization rules. That would raise prices of goods traded across the two countries. While average MFN tariffs are relatively low, there is great variation between sectors. In the United States, duties are highest for clothing, according to the Pew Research Center, averaging 18.7 percent or 15.8 percent depending on whether the garment is knitted or crocheted. Vegetables face an 8.4 percent duty.

Mexico’s highest average MFN tariffs are on agricultural products - 21.4 percent on dairy products, and 16.7 percent on animal products, WTO data show, That could hurt U.S, farmers who export to Mexico, The U.S, poultry sector, which exports products worth more than $1 billion a year to Mexico, has warned that it could be hit hard, NAFTA created special visas that give skilled workers such as software developers the ability to move between Canada, the United silver waves cufflinks States and Mexico with relative ease, Ending the deal would be a blow to those workers and could create new costs and red tape for the businesses that want to hire them..

The United States and other countries often protect local industries from cheap imports with anti-dumping duties, special tariffs that are allowed under international law when foreign companies are selling goods below their true market value. But market value is often a subject of debate. That’s why Canada insisted that NAFTA include a dispute settlement mechanism that makes it possible to challenge anti-dumping duties in front of a bi-national panel, not just in local courts. Terminating NAFTA would end this system, potentially exposing companies in all three countries to more anti-dumping duties.

(Reuters) - Pharmacy chain and benefits manager CVS Health Corp on Wednesday said as of Jan, 1 it will offer a new prescription benefit option guaranteeing its health plan clients 100 percent of any rebates, discounts or other fees paid by drugmakers, The new plan model is aimed at providing greater drug cost simplicity, predictability and transparency, CVS said, The “guaranteed silver waves cufflinks net cost” option could also deflect growing criticism that pharmacy benefit managers (PBMs) reap gains off the widening gap between pharmaceutical list prices and their lower net cost after hefty rebates paid by drugmakers to secure coverage and access to their products..

President Donald Trump, who has promised lower prescription drug costs for U.S. consumers, earlier this year singled out industry “middlemen”, such as PBMs and insurers, and the common practice of drugmakers offering rebates to them. PBMs like CVS’ Caremark unit make a profit by using their scale to negotiate drug prices and by providing cost-management strategies to health plans. Under its new option, CVS takes on the risk of drug price inflation and shifts in drug use - at least for the term of each contract.

The new model guarantees average spending per prescription across each distribution channel – retail, mail order and specialty pharmacy, Derica Rice, president of silver waves cufflinks CVS Caremark, said in an interview, Rival PBM Express Scripts Holding Co last month announced a new drug coverage list aimed at accommodating reduced prices for brand-name drugs as a way to encourage drugmakers to move away from paying rebates after a prescription is filled, Trump Administration officials have also suggested ending the rebate practice..

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