Thumbs up for NAFTA
How does one negotiate with a person who keeps changing positions as the audience warrants, talks in vague generalities because he lacks basic knowledge of the issue, and usually says one thing and means another? Those were concerns that New England governors and eastern Canadian premiers had to grapple with this week when they sat down for their annual conference in Charlottetown.
The elephant in the room, of course, is U.S. President Donald Trump, and a key issue facing premiers and governors is the current renegotiation of the North American Free Trade Agreement (NAFTA).
Governors and premiers are acutely aware of the immense value of trade between their northeastern states and Atlantic Canada and Quebec. And of the hundreds of thousands of jobs dependent on their historic, closely intertwined economies. Each side was talking to the converted — NAFTA has worked well and must remain.
President Trump has long complained that NAFTA is a bad deal for the U.S. and that the other partners — especially Mexico — have benefited to the detriment of U.S. jobs and trade balance. The president might call NAFTA one of the worst trade deals in history but he’s getting few takers in New England, other states or from members of Congress.
Canada had largely escaped scrutiny but just as premiers and governors were about to sit down in Charlottetown, there goes Mr. Trump, tweeting to complain that both Canada and Mexico were being “very difficult” in NAFTA talks. He hinted that he might just terminate the deal. His comments were meant to rattle Canadian and Mexican negotiators as talks now shift to Mexico from Washington. There were likely also made to shake up governors and premiers gathering on P.E.I.
Most observers and political leaders didn’t appear to take the president’s threat too seriously. They agree that NAFTA needs to be renegotiated but only to modernize it for the 21st century and make it better for all sides. And they want nothing to do with his ultimatums or threats of termination. President Trump likes to talk tough and back-scratch his electoral base but those kinds of comments have become predictable and tiresome.
A key Trump ally assured Charlottetown delegates that they have nothing to fear. Maine Governor Paul LePage is confident that any issues with NAFTA can be fixed. His advice: Don’t read too much into what Mr. Trump says. “He (Trump) really truly believes in having free trade and good, honest trade between the two countries.”
So the consensus in Charlottetown was to take the president’s sometimes soaring rhetoric with a rather large dose of skepticism and let common sense prevail. To that end, the first resolution passed by governors and premiers touted the importance of cross-border trade and commerce to their respective economies.
They are looking forward to a mutually beneficial future under NAFTA. The president should take a lesson from Charlottetown and do the same.