Trudeau signals trade deal in reach
Canadian prime minister warns of more work before joining U.S.-Mexico plan
WASHINGTON — Canadian Prime Minister Justin Trudeau on Wednesday said it was possible the U.S., Canada and Mexico could be nearing a deal to rework the North American Free Trade Agreement, reflecting a surge of optimism that a pact was now within reach.
But, speaking at a news conference in Canada, he cautioned that there was more work to do and warned that he could still walk away from discussions if he felt it didn’t line up with the best interests of Canadians.
“We recognize that there is a possibility of getting there by Friday, but it is only a possibility, because it will hinge on whether there is ultimately a good deal for Canada,” Trudeau said, according to Reuters. “No NAFTA deal is better than a bad NAFTA deal.”
Trudeau and President Trump are now in the position of jockeying publicly
while frantically negotiating in private, as their top trade officials are engaged in continuous Washington meetings.
Canadian Foreign Minister Chrystia Freeland on Wednesday expressed optimism about the status of the talks after a meeting with U.S. Trade Representative Robert Lighthizer.
“I continue to be encouraged by the good conversations we are having and the progress we are making,” she said outside Lighthizer’s office.
Freeland arrived Tuesday in Washington and met with Mexican officials, who briefed her on the preliminary deal Trump announced Monday. The deal would establish new manufacturing, labor and environmental rules.
“A lot has been accomplished,” she said, pointing out some of the areas that the United States and Mexico already have resolved.
But the talks have a ways to go, she said. “We have a huge amount of work to do this week,” she said.
Freeland declined to discuss any unresolved issues. She said she and Lighthizer had agreed not to discuss specific disagreements in the news media as they negotiate, saying they preferred “not to negotiate in public.”
Canadian officials were largely boxed out of discussions in recent weeks because of Trump’s ongoing feud with Trudeau, which spilled into public view during the Group of 7 summit earlier this summer in Canada.
On Monday, Trump announced he had reached a trade agreement with Mexico and threatened to use that deal as a replacement for NAFTA, essentially threatening to kick Canada out of the arrangement. It’s unclear if such a move would even be permissible under U.S. law, but Canada quickly rushed to the negotiating table.
Several U.S. lawmakers have rushed to Canada’s defense Tuesday, saying that Canada’s involvement is critical before they will consider approving any changes.
"Obviously, Canada's got to be willing to reach an agreement, but it would be really shortsighted for us to have an agreement only with Mexico," said Sen. Jerry Moran, R-Kan.
Freeland said Canadian leaders were impressed by the progress the United States made with Mexico, but she wouldn’t commit to fully supporting the broader changes yet.
U. S. ambassador to Canada Kelly Craft, who also attended the Wednesday meeting, said discussions were positive. “Everybody is moving forward, and that’s what’s important,” she said.
Canadian and U.S. negotiators have a number of differences they need to resolve, including disagreements over dairy policy, the process for resolving trade disputes and intellectual property protection rules.
Canadian officials have insisted that Trump remove tariffs he recently imposed on steel and aluminum imports before they can finalize any deal.
Lighthizer wants to send a letter to Congress by Friday that would formally begin a 90-day process for reworking the deal. The precise terms of the deal would not have to be completed until late September under such an arrangement.