U.S. targets dairy, wine, grains

Trump administration wants Canada to increase online duty-free limit by 4,000 per cent

WASHINGTON — The Trump administration has released its broad goals for a new North American Free Trade Agreement in mostly vague language that offers just enough specific clues to point to potentially tough negotiations ahead.

The U.S. says it wants more exports of its dairy products, wine and grains; freer trade in telecommunications and online purchases; new rules on currency manipulation; an overhaul of the dispute-settlement system; and more access for U.S. banks abroad.

A Washington-based trade expert who advises the Canadian government didn’t flinch when asked what this means for NAFTA talks, which are scheduled to start next month: "Longer, rather than shorter," said Eric Miller, a consultant at Rideau Potomac who advises Industry Canada.

“It will be pretty intense and hardfought . ... Don’t expect it to be finished in less than eight months,” Miller said. “And expect Canada to have to fight hard for issues it cares about.”

Some of the issues might be hotly debated, even between Canadians. For example, the demand on online purchases could pit bargain-hunting Canadian consumers against bricks-and-mortar shops. The U.S. wants to increase the amount Canadians can buy online without paying an import tax, by 4,000 per cent. ‰See the Record’s view: A8

Canada has one of the world’s most punitive duty systems for online shoppers. It will be urged to increase its duty-free limit to $800 from its current $20, according to the document released Monday.

The 16-page list contains elements that appear contradictory or confusing. It says the U.S. will demand more opportunities for American suppliers for government procurement abroad. But in the next breath, it insists on preserving Buy American rules that limit such rights for foreigners.