The Telegram (St. John's)

Trump ups caustic Canada remarks

Dairy, lumber: Trump team signals broader renegotiat­ion of NAFTA

- BY ALEXANDER PANETTA

U.S. President Donald Trump’s surprising­ly caustic complaints about trade with Canada in recent days could be setting the stage for a broader renegotiat­ion than previously signalled of the North American Free Trade Agreement.

The administra­tion is suddenly suggesting that irritants like dairy and softwood lumber could be on the table in the update to NAFTA, rather than just the minor tweaking the president spoke of a few weeks ago.

On Tuesday Trump said Canada has “outsmarted” the U.S. for a long time but his administra­tion is “not going to put up with it.”

Trump has been railing against Canada’s decision to change its policy on pricing domestic milk to cover more dairy ingredient­s, leading to lower prices for products, including ultra-filtered milk.

His administra­tion moved Monday to impose a 20 per cent tariff on softwood lumber entering the U.S. from Canada, escalating an intensifyi­ng trade dispute between the two countries.

He says he’s not worried about sparking a trade war with Canada but says it has “outsmarted our politician­s for many years.”

Trump made the remarks Tuesday while signing an Executive Order promoting agricultur­e and rural prosperity in U.S.

Also Tuesday, Trump’s point man on the file explicitly linked individual disputes to the broader negotiatio­n. Commerce Secretary Wilbur Ross said the reason lumber and dairy have erupted as irritants is they’re not properly addressed in the old agreement, which he calls obsolete.

“Everything relates to everything else when you’re trying to negotiate,” Ross told a news briefing at the White House.

“Think about it: if NAFTA were functionin­g properly, you wouldn’t be having these kinds of very prickly, very unfortunat­e, developmen­ts back to back. … If NAFTA were negotiated properly, you wouldn’t have these.”

When a reporter pointed out that dairy and lumber aren’t part of the free-trade agreement, Ross replied: “That’s one of the problems.”

As trade tensions escalated with Canada, he made that case from the White House press room podium. He was there to explain why the U.S. administra­tion had begun slapping tariffs averaging 20 per cent on softwood lumber — the latest move in a longstandi­ng dispute.

That led to an unusual scene. The White House’s daily briefing began with exchanges about the most arcane Canadian trade issues, like stumpage fees from public land and dairy regulation­s that have limited imports of milk proteins.

Some American reporters asked why he was so ostentatio­usly picking on Canada, such a close ally and neighbour. Ross replied: “They’re generally a good neighbour. That doesn’t mean they don’t have to play by the rules.”

 ?? AP PHOTO ?? U.S. President Donald Trump gives ‘thumbs-up’ as he leaves the stage after speaking on Capitol Hill in Washington, Tuesday.
AP PHOTO U.S. President Donald Trump gives ‘thumbs-up’ as he leaves the stage after speaking on Capitol Hill in Washington, Tuesday.

Newspapers in English

Newspapers from Canada