NAFTA back in the spotlight
Trump to delay signing; Trudeau alludes to deal after Mexico elects new president
OTTAWA — Prime Minister Justin Trudeau has congratulated Andres Manuel Lopez Obrador on his victory in Mexico’s presidential election.
Trudeau highlighted Canada’s close ties with Mexico and promoted the trade relationship, zeroing in on the ongoing efforts to renegotiate NAFTA.
“Canada and Mexico are close friends and longtime partners. We share common goals, strong people to people ties, and a mutually beneficial trading relationship that is the envy of the world — reflected in our joint effort to update the North American Free Trade Agreement for the 21st century,” Trudeau said.
Donald Trump has also congratulated Lopez Obrador on winning the presidency, but the U.S. president has said he intends to hold off on signing a new NAFTA deal until after the U.S.’s fall midterm elections, in hopes of reaching a better deal.
He said he could quickly sign an agreement, “but I’m not happy with it. I want to make it more fair.”
In the interview aired Sunday on Fox News Channel’s “Sunday Morning Futures with Maria Bartiromo,” Trump again threatened to impose tariffs on imported cars, trucks and auto parts, saying, “The cars are the big ones.” The move has been viewed as a possible negotiating ploy to restart NAFTA talks.
U.S. tariffs on auto imports would be a major blow to Canada’s economy because of the importance of the auto industry plays in the country. The U.S. Commerce Department is expected to hold hearings on auto tariffs in late July and to complete its investigation into auto imports later this summer.
The Trump administration slapped duties on steel and aluminum imports from Canada and other allies a month ago, and Trudeau’s counter-tariffs on a range of products took effect on Sunday.
After the Mexican election, Lopez Obrador said he supports reaching a deal to renegotiate NAFTA, saying he’ll propose that his own team be included in the talks. The winning candidate said he will make that proposal in a meeting Tuesday with current President Enrique Pena Nieto.
Lopez Obrador told the Televisa network Monday that he will respect the current team of negotiators, and let them continue representing Mexico until he takes office Dec. 1, noting that he wants to have information on what’s being discussed and “to help as much as we can.”
Trudeau had been working closely with outgoing Mexican President Enrique Pena Nieto on the NAFTA negotiations and spoke with him about the deal on Friday ahead of the elections. During this conversation they “reaffirmed the close friendship” and agreed to continue working toward a mutually beneficial outcome, according to a statement from Trudeau’s office issued on Saturday.
Trudeau agreed to stay in touch with the outgoing Mexican president, and said Monday he hopes to work closely with the country’s new president to “build on the vibrant partnership between our two countries.”