UN speech postponed
NAFTA NEGOTIATIONS INTENSIFY AS DEADLINE LOOMS
Foreign Affairs Minister Chrystia Freeland postponed her marquee United Nations speech Saturday as negotiators on both sides of the Canada-U.S. border continued their full-court press for a breakthrough on a North American free trade deal.
Freeland, who had been scheduled to deliver Canada’s address to the General Assembly, exchanged her slot with another country on the UN itinerary that was to take the rostrum Monday — and sources familiar with the plan say it may not even be the minister who gives it.
Monday is an important date in the NAFTA calendar: Congress has declared an Oct. 1 deadline for Canada to join an existing agreement between the U.S. and Mexico in time for a vote on Capitol Hill, and it’s also the day voters in Quebec go to the polls.
Quebec, which is home to half of Canada’s dairy industry, has become an important political fulcrum in the talks, particularly since sources familiar with the effort say Canada has indeed offered concessions that would improve access to the country’s dairy market for U.S. producers.
And despite the fact that dairy remains a popular talking point for people like U.S. President Donald Trump and his trade ambassador, Robert Lighthizer, sources say it’s no longer a hurdle, suggesting that those concessions have been agreed to on the American side.
Other sources say Freeland, who was in Ottawa on Saturday along with U.S. ambassador David MacNaughton, took part in a lengthy conference call Friday night with negotiators and their U.S. counterparts in Washington, who have been engaged in intensive talks all week.
Trade experts took the change in Freeland’s itinerary as a positive sign: “It is more likely than not that we will have a deal by the deadline,” said Dan Ujczo, an Ohio trade lawyer and partner with the U.S. firm Dickinson Wright.
One insider close to the talks, speaking on condition of anonymity given their sensitive nature, was more cautious: “I have learned not to count chickens.”
The most contentious issues continue to be preserving Canada’s cultural exemption and Canada’s insistence on preserving Chapter 19, which allows for independent panels to resolve disputes involving companies and governments.
Canada also wants assurances it will no longer be subject to heavy American tariffs on steel and aluminum exports, as well as autos - a weapon Trump has made clear in recent months is his preferred cudgel for beating up on trade partners he believes are mistreating the U.S.
As of now, Canada appears content to conduct the negotiations via conference call — a departure from its earlier strategy, which saw Freeland racking up the frequentflyer miles as she jetted back and forth between Washington and Ottawa.