Ottawa NAFTA talks crawl as Trump threat lingers
The third round of negotiations to rewrite the North American Free Trade Agreement has wrapped up with the lead ministers for Canada, Mexico and the United States congratulating themselves for the progress made so far.
But the spectre of a U.S. withdrawal by President Donald Trump is looming ever larger, thanks to stalled progress on major issues.
The progress cited by Foreign Affairs Minister Chrystia Freeland includes signing off on one chapter of the rewritten continental trade pact focused on small and mediumsized businesses.
Freeland said the three countries expect to sign off on the competition chapter prior to the next round of negotiations in about two weeks in Washington.
“Meaningful advances’’ have also been made in telecommunications, digital trade, good regulatory practices and customs and trade facilitation, she added.
U.S. Trade Representative Bob Lighthizer acknowledged, however, that difficult issues are still to come.
The slow pace of the Round 3 talks is being widely blamed on the lack of concrete American proposals _ fuelled by internal divisions in the U.S. _ but there is also grumbling about a lacklustre showing by some Canadian negotiators as well.
That is stoking broader fears that an impatient Trump could trigger NAFTA’s withdrawal clause if he doesn’t see a win for the U.S. by the end of the year.
The talks are ending a day after the U.S. Department of Commerce proposed a hefty 219 per cent countervailing duty on jets manufactured by Montreal’s Bombardier, further straining the Canada-U.S. trading relationship.
During question period Wednesday, Prime Minister Justin Trudeau acknowledged that Freeland and Lighthizer discussed the Boeing-Bombardier dispute in their meeting.
A rift emerged also Tuesday with unions saying Canada was facing opposition from the United States and Mexico on its proposal to raise labour standards, targeting what are seen as anti-union practices in more than two dozen U.S. states and improving the plight of Mexican workers.
In addition to the impasse on labour, no substantive progress was made on the investor state dispute settlement process; opening up Canada’s supply-managed dairy and poultry industry; or the U.S. demand for greater American content in automobiles manufactured in North America.
Freeland reiterated her oftrepeated message that the U.S. enjoys a trade surplus with Canada in variety of areas, citing the statistics on steel, manufacturing and auto parts.
She cited them not as an example of a “good measure of the success or failure of a trade deal, but to stress that our trade with the United States is reciprocal, mutually beneficial and nearly perfectly balanced,’’ Freeland said.
She added: “We have a highly productive relationship. We want to keep it that way.’’
A top Mexican business leader echoed the “do no harm’’ approach to the talks in an interview with The Canadian Press.
Mexico is deeply worried about the possibility of Trump making a move to unilaterally withdraw from NAFTA, said Moises Kalach, a leading member of the private-sector group that advises the Mexican government on the negotiations.
“We take it very seriously. He is the president of the United States,’’ Kalach said in an interview.
Like Canada, Mexico has mounted its own full-court press on various levels of U.S. government and business. Kalach cited 200 stakeholder meetings in the U.S. and meetings with 22 state governors. Mexican business leaders also planned meetings with 20 Canadian businesses and associations this week.
The overarching takeaway from all of that consulting, said Kalach, is this: most are on a different page than Trump and see NAFTA as essential.
“We’re almost 100 per cent aligned in the private sector sometimes, even with the governments of Mexico and Canada,’’ said Kalach.