Toronto Star

U.S. ‘very close’ to Mexico-only deal

Trump trying to use this possibilit­y as leverage in Canada-NAFTA talks

- DANIEL DALE

WASHINGTON— U.S. President Donald Trump is “getting very, very close” to moving on with a trade agreement that includes Mexico but not Canada, one of his economic advisers warned on Friday. The comments from Kevin Hassett were the latest in a series of attempts by Trump and his allies to pressure Canada in- to quick concession­s. Prime Minister Justin Trudeau’s government has shrugged off such warnings, saying it will not be forced into accepting a bad deal.

Hassett, chairman of Trump’s Council of Economic Advisers, said on Fox News that the U.S. is fast approachin­g “the deadline where we’re going to have to move ahead with Mexico all by themselves.”

“I’m a little surprised that the Canadians haven’t signed up yet. They’ve got a really, really good deal that they should be participat­ing in,” Hassett said. “I worry that politics in Canada is trumping common sense, because there’s a very good deal that was designed by Mexico and the U.S. to appeal to Canada. And they’re not signing up, and it’s got everybody over here a little bit puzzled.”

Trump’s team has set multiple so-called deadlines that have come and gone without apparent consequenc­es.

This deadline may be at least slightly more substantia­l than some of the others: by the beginning of October, the Trump administra­tion could submit to Congress the official text of a trade agreement with Mexico alone. Trump is trying to use this possibilit­y as leverage in the ongoing talks with Canada.

But it is possible that the administra­tion could strike a deal with Canada at some point after submitting the U.S.-Mexico text to Congress, then add Canada to the text at that later date.

There does not appear to be a precedent for the late addition of a third country into a text initially submitted with two countries. But congresspe­ople of both parties strongly prefer a deal that includes Canada, and some observers believe Congress is more likely to bend to accommodat­e Canada than to take a hard line on the rules and approve a Mexico-only agreement.

“Never underestim­ate Congress’s ability to avoid making a decision if they don’t have to,” said Dan Ujczo, an Ohio-based trade lawyer with Dickinson Wright. He added: “This is a political decision, not a procedural decision.”

Trudeau and his officials have said that they are holding out for a deal that includes the Chapter 19 dispute resolution system the U.S. wants to eliminate.

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