Canada rejects U.S. NAFTA criticism

OTTAWA • Canada is shooting back at American criticism that it is being inflexible and unconstructive at the North American Free Trade renegotiation that resumed this week in Montreal.

Canadian officials are taking direct aim at the U. S. narrative that its negotiators are being inflexible — or even obstinate — when it comes to discussing the controversial Trump government proposals to raise continental content on automobiles, scrap the dispute resolution mechanism, and institute a five- year sunset clause.

They say Canada has tabled complete chapter proposals on more than half of NAFTA’s 30 sections, and has put forward substantive proposals and text on every part of the entire agreement already.

Senior officials with direct knowledge of the negotiations discussed the Canadian approach with The Canadian Press on condition of anonymity because of the sensitive nature of the ongoing negotiations.

With written Canadian proposals sitting on all tables, the sixth round in Montreal is about returning in earnest to the bargaining to find a creative space that works for everyone, officials say.

The so- called American poison pills on autos, dispute resolution and the sunset clause were tabled after that. That makes them counterproposals as far as Canada is concerned, they added.

Because of that, Canadian officials are perplexed by reports the Trump administration is annoyed at Canada’s unwillingness to engage, as well as its insistence on including so-called progressive trade elements. All four tenets of Canada’s progressive agenda — gender, labour, environment and Indigenous issues — are on the agenda for talks this week, officials said.

Foreign Affairs Minister Chrystia Freeland hosted Mexican Economy Minister Ildefonso Guajardo in Toronto on Monday in an attempt to compare notes on the upcoming NAFTA round.

“The two agreed that all parties must show goodwill and that negotiators must continue to focus on issues that will promote economic prosperity in North America. Both ministers committed to achieving real progress during this round of NAFTA negotiations in Montreal,” Freeland’s office said in a statement that appeared aimed directly at U. S. Trade Representative Robert Lighthizer.

Mexico has been pushing a vigorous Plan B agenda, to compensate for a possible U. S. withdrawal and is communicating that to the Trump administration, according to sources. International Trade Minister Francois- Philippe Champagne rejected the U.S. administration’s grumbling about Canada’s recent sweeping complaint with the World Trade Organization about U. S. trade practices, as well as Canada’s insistence on a progressive trade concept. Champagne told reporters on Monday that from Canada’s perspective, those aren’t the toughest part of the talks.

Rather, it’s the same issues that “were difficult at the time of Brian Mulroney, so we’re talking about Chapter 19 ( dispute mechanism). There are things about procurement, there are things about the sunset clause (which requires unanimous approval every five years for the agreement to continue).”

As for the trade complaint overshadowing discussions, Champagne brushed off its impact and said Canadians expect their government to be firm in its response to U.S. trade complaints.

“Canadians want us to be constructive … Canadians expect us to be creative, but at the same time, Canadians expect us to be firm when it is about key sectors like supply management,” he said.