Canada shrugs off Republican pressure
Ottawa unfazed by criticism from Trump’s allies over NAFTA talks
WASHINGTON— The Canadian government is shrugging off mounting trade pressure and criticism from U.S. President Donald Trump’s Republican allies in Congress.
“I am paid in Canadian dollars. U.S. legislators are paid in American dollars. It is my job to stand up for the national interest,” Foreign Affairs Minister Chrystia Freeland said upon the resumption of NAFTA negotiations in Washington. “That is what we have done from Day 1 and that is what we are going to continue to do.”
Freeland said the government is unconcerned about the U.S. side’s professed deadlines, saying Canada’s only target is to make a good deal. She said Canadians have a “national talent” for making compromises but that the government would not give in for the sake of reaching an agreement.
“We’re interested in what could be a good deal for Canada, but we’re going to need to see a certain amount of movement in order to get there and that’s certainly what we’re hoping for,” Prime Minister Justin Trudeau said in Ottawa.
There was no sign of an imminent deal on Wednesday. Freeland had two meetings with U.S. Trade Representative Robert Lighthizer. She said, as usual, that they had been constructive but provided no details.
Facing an unpredictable president, Trudeau and his ministers have made a concerted effort to build relationships with members of Trump’s party in the House of Representatives and the Senate.
But two senior members of the House have expressed frustration with Canada in recent days. Both have hinted, though not explicitly said, that they would be willing to let Trump proceed with a deal with Mexico alone if Canada does not make quick concessions.
“We’re not going to leave Mexico hanging,” Rep. Kevin Brady, chairperson of the powerful House ways and means committee said Wednesday.
Congressional Republicans’ views are important because Congress must approve any final deal — and because it is up to Congress to decide whether it would be legal under trade law for Trump to exclude Canada. If Congress took Canada’s side, Trump would have less leverage. With Congress’s permission, Trump can submit the text of a Mexico-only deal as soon as the end of the month.
The Canadian Press reported Wednesday that there had been progress on the once-contentious issue of government procurement, saying the U.S. had backed down on its contentious “Buy American” proposal to limit the ability of Canadian and Mexican firms to win U.S. government contracts.
The negotiations are believed to be stuck on a small number of difficult issues. Among them are the “Chapter 19” system for resolving trade disputes and Canada’s protectionist dairy supply management system.
Canada continues to receive strong support from the U.S. business lobby. Three influential groups — the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers — sent Lighthizer a letter early this week saying “it would be unacceptable to sideline Canada, our largest export market in the world.”
Chamber of Commerce chief executive Tom Donohue said Wednesday that a deal with Mexico alone would not satisfy U.S. trade law.
“If Canada doesn’t come into the deal, there is no deal,” he said at an event in Washington.