US to partially unveil key NAFTA proposal, talks seen dragging
OTTAWA: US trade negotiators will only partially unveil new text on modifying a key chapter on investment under NAFTA, two well- placed sources said, underlying the cautious pace of talks that are supposed to wrap up by the end of the year.
The sources, with knowledge of the effort to modernize the trilateral North American Free Trade Agreement ( NAFTA), said the proposal on investment would not elaborate on possible changes being weighed by Washington under Chapter 11 of NAFTA.
US off icials, speaking on condition of anonymity, said the administration was still consulting with stakeholders, including business, on the issue.
Trade experts say the sluggish tempo of the talks mean it is doubtful whether Canada, Mexico and the United States – meeting in Ottawa for the third of seven planned rounds – can come to a deal by the end of December.
Chief Canadian negotiator Steve Verheul said he did not expect the US side to present detailed proposals in Ottawa on major issues such as dispute settlement, the dairy sector and tougher rules for North American content on autos.
“We’re making good solid progress ... but the end game is always the hardest part and impossible to predict,” he told reporters towards the end of the day.
US President Donald Trump, who frequently describes the 1994 treaty as a disaster, is threatening to walk away unless major changes are made.
Verheul told reporters the talks were constructive, although they had occasionally “become a little more heated”.
He said had seen no sign so far that the US delegation might be preparing to leave the talks.
NAFTA underpins more than US$1 trillion in trade between the three countries a year, accounting for 39 per cent of Canada’s GDP and 40 per cent of Mexico’s, but just 5 per cent in the case of the United States, the world’s largest economy. — Reuters