Nafta future iffy going into new round of talks
montreal — Negotiators from Canada, Mexico and the United States on Tuesday will kick off the sixth round of talks aimed at revamping the North American Free Trade Agreement (Nafta) in Montreal.
The six days of talks come amid high trade tensions between Ottawa and Washington and as US President Donald Trump insists Mexico will pay for the construction of a controversial wall along the US’s southern border.
Trump continues to blow hot and cold on the continental trade pact that he has threatened to repeal, and recently said in a Twitter message that “Nafta is a bad joke.”
Outraged by huge anti-dumping and countervailing duties imposed on Canadian aircraft manufacturer Bombardier as well as its primary softwood lumber and newsprint exporters, Ottawa recently filed a complaint with the World Trade Organisation alleging widespread trade violations by its neighbour.
The government of Prime Minister Justin Trudeau is aiming for a repeat of past adjudications that went Canada’s way to turn the tide against rising US protectionism.
In line with his campaign commitment, Trump forced Canada and Mexico to the table to renegotiate the 1994 free trade pact, promising to bring back US manufacturing jobs and update Nafta for the digital age.
Talks to modernise what Canadian Foreign Affairs Minister Chrystia Freeland called “the largest free trade area in the world” were originally scheduled to wrap up by the end of 2017. But the parties have agreed to continue negotiating until March.
Despite significant progress on so-called “bread and butter” issues, Freeland said Canada is bracing for “the worst,” including a possible US withdrawal from Nafta that would effectively mean the end of the tripartite trade pact.
While often railing against Nafta, Trump has at times also seemed to soften his view, telling the Wall Street Journal he would be “a little bit flexible” on his threat to withdraw because of the upcoming Mexican presidential election on July 1.
Although he failed to mention the upcoming US midterm elections, these must also weigh on mind. —