Nafta deal unlikely this week, raises tariff fears
Washington, US - Nafta talks are picking up again but a deal is unlikely to be reached this week, four people familiar with talks said - increasing the odds the latest deadline will be missed amid Donald Trump’s threat to freeze Canada out.
US Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland will meet on Wednesday in Washington, their first in-person session in eight days. The two countries remain at odds on core issues, including dairy and dispute panels.
A deal is unlikely this week without major movement, the people said, speaking on condition of anonymity as negotiations continue. The talks could extend into next week, and several deadlines have been missed so far. A Canadian official had said Thursday was the likely deadline to reach a deal in order to convert it to legal text by the end of the month. The countries have been pressuring each other on the eve of the meeting. Representative Steve Scalise of Louisiana, a key Republican lawmaker, warned in a statement on Tuesday that congressional patience with Canada was wearing thin. Prime Minister Justin Trudeau, at the same time, continues to say he would rather see no deal reached than be forced to accept a bad one.
A preliminary trade deal was reached with Mexico in August. Barring an accord with Canada, Trump has threatened to proceed with only Mexico, though Scalise stopped short of saying Congress would go along with that.
“It is growing increasingly unlikely that you can get text to the Congress by September 30,” said Jennifer Hillman, a professor of law at Georgetown University and former general counsel to the Office of the US Trade Representative.