NAFTA talks could start in latter half of this year

U.S. commerce secretary anticipates adding chapters to address digital economy

WASHINGTON— NAFTA negotiations will probably start late this year, might take about a year and will include serious changes that add several entire new chapters to the landmark agreement.

That’s according to U.S. Commerce Secretary Wilbur Ross, tasked by President Donald Trump to assist negotiations. And while the president suggests he simply wants minor tweaks in the arrangement with Canada, his point man foresees substantive changes.

Ross credited the president for preparing other countries to make concessions: “He’s made my job easier by softening up the adverse parties. What could be better than going into a trade negotiation where the fellow on the other side knows he has to make concessions?”

In the interview, Ross revealed multiple aspects of his thinking on the upcoming renegotiations of the seminal 1993 agreement with Canada and Mexico.

Will the U.S. seek only minor administrative changes, or more substantive ones that would require consultations with U.S. Congress, under the rules of so-called fasttrack legislation, and then a vote in Congress? Ross said he intends to involve Congress.

When would the U.S. start negotiations, which must follow a 90-day consultation process with Congress? Not right away, he said. The U.S. has yet to get its entire cabinet confirmed, including the Trade Representative, who is the legally designated point of contact with Congress.

“You’re talking probably the latter part of this year before real negotiations get underway,” Ross said. “(Then) I think the negotiations hopefully won’t take more than a year.”

Ross says he has an open mind on another key question — whether the final deal should be a three-country arrangement or two bilateral ones. As for the substance, he says there will be significant changes.

Ross hopes to add entire new chapters to NAFTA, which currently has 22. He says the additions would reflect the modern digital economy.

“It’s an old treaty. Our economy is very different from what it was (back then),” he said.