Movement on automobiles, ‘positive’ tone give Canada optimism

WASHINGTON The NAFTA discussions have seen substantial progress over the last few days, Canada’s ambassador to the United States said Tuesday as he declared feeling more hopeful than he has in some time.

David MacNaughton suggested his new-found optimism is based on two developments: progress on the thorny issue of automobiles, as well as a more general thawing of the frosty tone in earlier talks.

“I must say that in the last two weeks the talks that we’ve had ... have been more positive than I’ve seen them before,” MacNaughton told a Washington gathering of the American Association of Port Authorities. “We still have a long way to go. But certainly the environment is one which is conducive to making a lot more progress in the next short while ... I’m optimistic. I am confident that we are going to move forward. ... . ”

Foreign Affairs Minister Chrystia Freeland did not make any public appearances last week when she was in Washington to meet U.S. trade czar Robert Lighthizer, who has said he is hoping for an agreement in principle within weeks.

The U.S. has said it hopes to wrap up an agreement in principle within weeks, before elections in Mexico and in the U.S. Congress.

MacNaughton cited two reasons for optimism. First, on automobiles, he hinted that a controversial U.S.-specific content requirement might still be on the table, but said the Americans have offered some creative ideas that build on a Canadian proposal from two rounds ago.

He said the ideas presented by the Americans would help achieve their main goal of ensuring production in the U.S., and follow up on a Canadian proposal — the Canadian plan would overhaul the rules for tariff-free vehicle trade and focus on the overall value of different components.

His other stated reason for optimism is the tone of recent talks.

“The president is always enthusiastic about making a good deal, but that would be the key caveat to any conversation, is making sure that whatever deal he makes is good for Americans, and American workers,” said White House spokeswoman, Sarah Sanders.