U.S. willing to wait on NAFTA deal: Mnuchin

OTTAWA/WASHINGTON • With about two weeks left until what may be the final deadline for a new NAFTA this year, Mexico and Canada are signalling there’s a deal to be had — if U.S. President Donald Trump wants one.

U.S. Treasury Secretary Steven Mnuchin, speaking in an interview on Fox News Sunday, said Trump’s priority is getting a good deal, even if it means disregarding “any deadlines” to let current lawmakers approve it. That would leave a vote to the next Congress, which Trump’s Republican Party may no longer control after November.

Mnuchin told CNBC on Monday the administration would even be open to a so-called “skinny deal” for NAFTA, which would entail making less significant changes to the pact that wouldn’t require congressional approval. But that’s not the White House’s current objective, he said. “For right now, we’re focused on a new NAFTA that would go through Congress,” he said.

With a possible U.s.china trade war “on hold” after negotiations last week, according to Mnuchin on Sunday, Trump’s administration has room to pivot back to NAFTA. The question is whether all sides are willing to give the “flexibility” that Mexico’s chief negotiator said on Saturday is needed.

“There’s always a chance,” Bruce Heyman, a former U.S. ambassador to Canada, told BNN Bloomberg TV on Friday, saying the “last leg” of trade talks is always tough. “I think the real question that has to be asked is: Does the U.S. administration want a deal or not? I think there’s a push-pull going on with Republicans.”

Talks have lately focused on the auto sector. The U.S. wants to rewrite rules so that a greater portion of a car is built in North America, and in the U.S. specifically. The U.S. has watered down some of its proposals, and Canada’s envoy to Washington has indicated the sides are very close to an agreement, but the U.S. and Mexico are said to be at odds over a provision to require a certain share of the vehicle to be built with higher-wage labour.

If an agreement is struck on autos, it’s possible other contentious issues could fall into place and a deal could be reached quickly. If each requires the same attention as the auto file, talks will drag for months or more.

After nine months of talks, the nations remain far apart, Mnuchin said Sunday. “So whether we pass it in this Congress or we pass it in the new Congress, the president is determined that we renegotiate NAFTA,” he said.

Steven Mnuchin