Premier worried about Americans’ possible withdrawal from NAFTA

Saskatchewan’s premier says he is “greatly concerned” about recent reports suggesting the United States plans to withdraw from a landmark free trade deal that has been in place for almost a quarter of a century.

Premier Brad Wall, who has previously spoken out about the importance of the North American Free Trade Agreement and other international projects to Saskatchewan’s economy, said it is “crucial to continued growth and prosperity in Canada, the United States and Mexico.”

“Millions of jobs depend upon trade between our three countries. The Government of Saskatchewan supports the federal government conducting a focused and determined effort to conclude a new NAFTA agreement,” Wall said in a statement.

Citing government sources, Reuters this week reported that Canadian officials — who are set to resume renegotiation talks this month — are growing increasingly concerned that the U.S. plans to withdraw from the 24-year-old agreement.

While the U.S. has been clear there was a possibility it would withdraw from the agreement, Canadian officials believe a positive outcome is possible “if there is goodwill on all sides,” Foreign Affairs Minister Chrystia Freeland told reporters Thursday.

“Our approach from the start has been to hope for the best, but prepare for the worst.”

Wall, who is expected to resign after the governing Saskatchewan Party elects a new leader later this month, is not the only one concerned. Former cabinet minister Rob Norris said last month that whoever replaces Wall must take urgent action in the face of “troubling storm signals.”

Saskatchewan Trade and Export Partnership CEO Chris Dekker said he also shares Wall’s concern, noting uncertainty is weighing down the Canadian dollar and the stock markets while renegotiation talks, which “have not progressed to anyone’s satisfaction,” continue.

Under NAFTA, virtually all originating goods — with the notable exceptions of Canadian dairy, poultry and eggs — are exempt from tariffs.

A U.S. withdrawal from NAFTA would not signal the end of cross-border trade, but there’s little question the imposition of new tariffs would make business more expensive in both countries, Dekker said.

In 2016, the province’s total exports to the U.S. totalled $12.8 billion — 47 per cent of all exports. Its next largest trading partner was China, with $3.6 billion in exports.