Canada wants to see ‘movement’ before signing revised NAFTA deal: PM
Pressure mounts for accord amid panic from U.S. auto sector about tariff threats
WASHINGTON Canada wants more from its negotiating partners before signing on to a revamped North American Free Trade Agreement, Prime Minister Justin Trudeau suggested Wednesday as his well-travelled foreign affairs minister resumed her place at the talks in Washington.
Chrystia Freeland, after arriving in the U.S. capital in a T-shirt emblazoned with the slogan, “Keep Calm and Negotiate NAFTA,” sounded a contemplative note as talks began, thanking journalists for keeping vigil and ordinary Canadians for their expressions of support. “People come up to me on the street or in airports, which is where I am often found, just saying how strongly they support Canada in these complex negotiations,” Freeland said.
Her reflective mood had some wondering whether a breakthrough was nearly at hand — a notion one insider wasted little time in batting down.
“No,” said the source, speaking freely in exchange for anonymity. “Not at all.”
Then there was the all-nighter pulled by one of Canada’s negotiating teams, which Freeland said didn’t wrap up its marathon session until 7 a.m. Wednesday. “There is some very intensive work happening,” she acknowledged.
Trudeau said Canada isn’t backing down from its own demands — a position that has some U.S. legislators bristling at what they consider a stalling tactic.
“We’ve been very clear that we’re interested in what could be a good deal for Canada, but we’re going to need to see a certain amount of movement in order to get there,” Trudeau said.
Meanwhile, the extended NAFTA talks and the possibility of Donald Trump carrying out his threat to impose tariffs on cars imported into the U.S. is heightening anxiety in the American auto industry, the head of the largest auto retailer in the country said Wednesday.
“Everyone in the automobile industry — doesn’t matter if you’re a retailer, a supplier or a manufacturer — is freaking out around tariffs on automobiles,” Mike Jackson, chairman and chief executive of AutoNation Inc., said Wednesday on Bloomberg Television. “The price point is so big, we all know it would be extremely disruptive, extremely expensive to the industry and most likely knock the economy into some sort of recession because it’s so inflationary.”
Jackson, who is also chairman of the Federal Reserve Bank of Atlanta, said he hopes trade deals can be reached with Canada, Europe, and Mexico that will avoid auto tariffs that Trump said could be as high as 30 per cent on vehicles imported into the U.S.
Pressure is mounting on the federal government to get a deal done. On Wednesday, Texas Republican Kevin Brady, head of the influential House Ways and Means committee, told CNBC the two sides are “close enough” and the time has come for Canada to “step it up” and get on board. And on Tuesday, House of Representatives majority whip Steve Scalise warned of “growing frustration” on Capitol Hill with what he calls Canada’s “negotiating tactics.”
Trade observers say that while many in Congress want Canada to be part of a three-way deal, they may not be willing to sacrifice an agreement in principle between Mexico and the U.S. negotiated earlier this year.
That deal is widely seen to require congressional approval before Dec. 1 in order to survive the arrival of an incoming Mexican government whose supporters have mixed feelings about the agreement.
Canada, meanwhile, has been pushing back against deadlines declared by the Trump administration — first the end of August, then the end of September.
“While we would all like to see Canada remain part of this threecountry coalition, there is not an unlimited amount of time for it to be part of this new agreement,” Scalise said in a statement. “Mexico negotiated in good faith and in a timely manner, and if Canada does not co-operate in the negotiations, Congress will have no choice but to consider options about how best to move forward and stand up for American workers.”
However, Jennifer Hillman, a professor of law at Georgetown University and former general counsel to the Office of the U.S. Trade Representative, said, “It is growing increasingly unlikely that you can get text to the Congress by Sept. 30.”
It’s even more unlikely to proceed quickly with only Mexico, she said. “Canada does still have some leverage.”
While we would all like to see Canada remain part of this three-country coalition, there is not an unlimited amount of time for it to be part of this new agreement.