Lethbridge Herald

NAFTA talks make ‘real headway’

Imminent withdrawal threats toned down

- Alexander Panetta and Mike Blanchfiel­d THE CANADIAN PRESS — MONTREAL

The NAFTA renegotiat­ion has survived a key round of talks, with the United States expressing some annoyance but hailing modest progress, promising future rounds, describing the trade pact as important and toning down the imminent withdrawal threats.

The week-long round concluded Monday with the U.S. trade czar sharing the widespread assessment of others that the latest talks marked the first concrete examples of constructi­ve dialogue on hot-button issues.

The talks are now scheduled to continue for at least two more months, with rounds scheduled for Mexico City and Washington, before policymake­rs confront a major dilemma: what to do during the spring, summer and fall as Mexico and the U.S. hold national elections.

Robert Lighthizer expressed myriad frustratio­ns Monday. The U.S. trade representa­tive said he was unsatisfie­d with Canadian proposals on autos, calling the progress too slow, dismissing another Canadian idea as a “poison pill” and bemoaning a Canadian complaint to the World Trade Organizati­on, a tactic he characteri­zed as a “massive attack” against the U.S. trading system.

On balance, however, he sounded like a man willing to give NAFTA a chance.

“Some real headway was made here,” Lighthizer said.

“The United States views NAFTA as a very important agreement. We’re committed to moving forward. I am hopeful progress will accelerate soon. We’ll work very hard between now and the beginning of the next round — and we hope for major breakthrou­ghs in that period. We will engage both Mexico and Canada urgently, and we will go where these negotiatio­ns take us.”

With just eight weeks left in the current schedule of talks, unfolding under President Donald Trump’s persistent threats to blow up the deal, the U.S. administra­tion has important decisions to make about NAFTA’s future.

The Montreal round represente­d a new phase for the negotiatio­ns. It included a first significan­t backand-forth dialogue on autos and other major sticking points. Sources say there were three hours of talks over two days about the autos proposal.

Lighthizer’s long-awaited verdict on the latest talks came at a public event alongside Foreign Affairs Minister Chrystia Freeland and Ildefonso Guajardo of Mexico. The three held a series of face-to-face bilateral meetings before their final closed-door, three-way huddle.

It was the first such group appearance since the trio’s memorably tense encounter in the fall.

Numerous participan­ts in the Montreal round were sounding cautiously optimistic in the lead-up to Monday’s closing statements, calling the latest talks less negative and more constructi­ve than initial ones, with the first true dialogue on serious sticking points — autos, dispute resolution and a five-year review clause in particular.

And there was the political dynamic: Freeland and Lighthizer went to great lengths to dispel the notion that the two don’t actually like each other — an impression created by frosty body language and rhetoric the last time the two shared the NAFTA stage last fall.

Lighthizer described his counterpar­ts as friends. He also shared fond memories of vacationin­g in the Montreal area with his family. Freeland was asked whether her relations with her U.S. counterpar­t might derail the talks and offered a one-word reply: “No.”

“Without being overly optimistic, I am heartened by the progress,” Freeland said, citing the closing of an anti-corruption chapter and other constructi­ve conversati­ons.

The U.S. statement was being closely parsed.

Lighthizer rejected the newest proposals as presented, and even disparaged some of them. He was especially scathing in an aside apparently referring to trade in services, where Canada suggested a protection­ist measure in response to a protection­ist U.S. proposal.

“If the United States had made (this proposal),” he said, “(it) would be dubbed a ‘poison pill.’”

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