Local businesses bracing for NAFTA renegotiation

With negotiations soon to begin on revamping the North American Free Trade Agreement, Niagara area business and industry representatives hope they aren’t left holding the short end of the stick.

The U.S. government, Monday, released its wish list for the NAFTA renegotiations set to begin Aug. 16.

In addition to issues like softwood lumber and more opportunities for U.S. financial-service providers, the U.S. wish list includes several elements that could have a direct impact on local business.

“The last thing Canada needs is another s--tty trade agreement,” said Greg Brady, president of Unifor 199 representing workers at the St. Catharines General Motors as well as several automobile parts manufacturing plants.

The U.S. priorities include plans to reduce imports of automotive parts from Asia, which could benefit both countries since Canadian manufacturers are facing the same competition.

But concerns remains that the deal might benefit the U.S. while hindering Canadian manufacturers.

“If we can get this to a happy medium where it’s going to benefit both Canada and the United States, we’d be all for it,” Brady said.

The union, he added, wants to ensure that any new deal “is in the best interest of the working people here in Canada, and doesn’t disadvantage us anymore than we are.”

Brady said the Unifor’s national office has issued a proposal it hopes will create “greater balance in the auto trade for North America.”

The proposal recommends: strengthening labour standards and raising wages, real made in North America rules, balanced trade, and a fair share of benefits for workers in each country.

Concerns about NAFTA’s potential impact on the auto industry also led St. Catharines city council to approve a motion in June, calling on the Canadian government to make the protection of Canada’s automotive industry a priority during the upcoming negotiations.

The last thing Canada needs is another s--tty trade agreement.” Greg Brady, president of Unifor 199

The motion calls for a letter to be sent to Prime Minister Justin Trudeau and federal government representatives outlining the city’s concerns, and urging local MPs to join the federal government’s parliamentary auto caucus and advocate for the well-being of Canada’s automotive sector.

Both St. Catharines MP Chris Bittle and Niagara Centre MP Vance Badawey are already members of the parliamentary auto caucus and have worked closely with the city on the issue.

Brady said he “couldn’t agree more” with the city’s motion.

“It’s vital to Unifor and to whatever businesses we have here,” he said.

Meanwhile, the list of U.S. NAFTA priorities could also have an impact on local retailers.

Greater Niagara Chamber of Commerce executive director Mishka Balsom said her organization “is gravely concerned” about the U.S. proposal for a 4,000 per cent increase in the amount Canadians can buy from U.S. businesses online, without paying import taxes.

“The new proposed de minimis limit is $800, from the current $20, which would match the U.S. level,” she said, adding about 67 per cent of Canadians make online cross-border purchases.

“In addition, while Canadian retailers are obliged to collect sales taxes, only a few U.S. states require online merchants to do the same, and there have been constitutional challenges in those states that have passed ‘Amazon laws,’” Balsom said. “The playing field for U.S. and Canadian retail is not even.”

She said the local chamber has teamed up with its counterparts in Windsor-Essex, Thunder Bay, and Sarnia Lambton, as well as Ontario and national chambers of commerce, lobbying to maintain Canada’s $20 limit “in the hope of protecting Canadian retailers – already hard-hit by global and technological change and preserve jobs both here in Niagara and in the whole of Canada.”