Edmonton Journal

U.S. House breaks, with no new NAFTA tabled for ratificati­on

- MIKE BLANCHFIEL­D

OTTAWA • Canadians will likely enter a fall election with the new North American free trade deal hanging in the balance, as Prime Minister Justin Trudeau said Monday he’s not rushing to ratify the pact in the face of U.S. political difference­s.

The Democrat-controlled U.S. House of Representa­tives began its five-week summer break on Monday without introducin­g a ratificati­on bill — a scenario Trump and his cabinet worked hard to avoid.

The Democrats want changes to the United States-mexico-canada Agreement, or USMCA. They want to change provisions on labour, the environmen­t, patent protection for drugs and enforcemen­t, and have by all accounts been working hard with Trump’s trade czar Robert Lighthizer to move forward.

“We recognize that there is a difficult partisan context in Washington right now between the Democrats and the Republican­s. We have said from the very beginning that we would keep pace with the American process on ratificati­on of the new NAFTA accords,” Trudeau said in Vancouver. “But we will do that in line with the American process when it picks up again this fall.”

Ever-ticking political clocks in both countries mean U.S. lawmakers — with one eye towards Trump’s 2020 re-election bid — won’t be in a position to take even the most tentative steps forward on the deal before the start of Canada’s federal election campaign, which is set to begin by mid-september at the latest. Canadians head to the polls on Oct. 21.

“I do not see that there will be a vote on the USMCA implementi­ng bill by the U.S. Congress prior to the writ dropping for the Canadian election.

The earliest that the USMCA implementi­ng bill could be introduced is Sept. 9 and there likely will be committed hearings in both chambers of Congress on the matter,” said Dan Ujczo, the Ohio-based trade specialist with Dickinson Wright.

A delay isn’t necessaril­y a bad thing, said Meredith Lilly, a Carleton University trade expert.

“The existing NAFTA, which remains in effect, is a better deal for Canada than the USMCA. So, the current situation is not a bad one for Canada, bearing in mind that ongoing uncertaint­y is generally negative for investment here.”

Trudeau reiterated his government’s position that the status quo is acceptable. “We of course benefit right now from the existing NAFTA that ensures that Canadians are well-served with good and reliable access to the North American market.”

NDP Leader Jagmeet Singh said his party shares key concerns of U.S. Democrats.

“It doesn’t make sense to rush ahead with something where we know the Democrats in Congress are working to make it better,” Singh said in an interview Monday.

Trade experts in Canada and the U.S. are divided on whether the delays may raise the odds of Trump invoking the six-month notice period to withdraw from NAFTA — a threat he repeatedly made during the tense renegotiat­ion of the pact.

Cyndee Todgham Cherniak, a Toronto-based internatio­nal trade lawyer, said the Democrats are likely to want substantiv­e changes that could leave the deal in limbo for many months.

THE EXISTING NAFTA, WHICH REMAINS IN EFFECT, IS A BETTER DEAL FOR CANADA.

 ?? THE ASSOCIATED PRESS/FILES ?? A North Atlantic right whale appears on the surface to feed. An increasing number of the endangered mammals have been killed recently, despite the lowering of speed limits for commercial shipping in the Gulf of St. Lawrence.
THE ASSOCIATED PRESS/FILES A North Atlantic right whale appears on the surface to feed. An increasing number of the endangered mammals have been killed recently, despite the lowering of speed limits for commercial shipping in the Gulf of St. Lawrence.

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