Canada, Mexico warned of ‘big bazooka’ on NAFTA
U.S. Commerce chief says concessions will be needed as trade talks go forward
WASHINGTON NAFTA negotiations will probably start late this year, might take about a year, and will include serious changes that could see the addition of several entire new chapters to the landmark agreement.
That’s according to U.S. Commerce Secretary Wilbur Ross, tasked by President Donald Trump to assist negotiations.
And while the president suggests he simply wants minor tweaks in the arrangement with Canada, his point man foresees substantive changes.
“The Mexicans know, the Canadians know, everybody knows, times are different. We are going to have new trade relations with people,” Ross told a Bloomberg broadcast interview Wednesday.
“And they all know they’re going to have to make concessions. The only question is what’s the magnitude, and what’s the form of the concessions.”
Ross credited the president for preparing other countries to make concessions: “He’s made my job easier by softening up the adverse parties. What could be better than going into a trade negotiation where the fellow on the other side knows he has to make concessions?”
Ross said the U.S. has been in a “trade war” for decades, without referring to a specific country. “The difference is our troops are now coming to the ramparts,” he said.
However, he said the U.S. should have the leverage to avoid sustaining much damage.
“If people know you have the big bazooka, you probably don’t have to use it,” he said.
In the interview, Ross revealed multiple aspects of his thinking on the upcoming renegotiations of the seminal 1993 agreement with Canada and Mexico.
He answered two lingering questions:
Will the U.S. seek only minor administrative changes, or more substantive ones that would require consultations with U.S. Congress, under the rules of socalled fast-track legislation, and then a vote in Congress? Ross said he intends to involve Congress.
When would the U.S. start negotiations, which must follow a 90-day consultation process with Congress? Not right away, he said. The U.S. has yet to get its entire cabinet confirmed, including the U.S. Trade Representative, who is the legally designated point of contact with Congress.
“You’re talking probably the latter part of this year before real negotiations get underway,” Ross said. “(Then) I think the negotiations hopefully won’t take more than a year.”