Let’s take a breath over NAFTA talks
The yo-yo is going up and down again. Canadians are now asking the same questions about U.S. President Donald Trump and NAFTA:
Will he or won’t he tear it up?
Media reports earlier in the week suggested demise was imminent.
“Canada increasingly convinced Trump will pull out of NAFTA” is the headline of a Reuters story that broke on Wednesday.
This news was courtesy of anonymous government sources discussing the internal dynamics of the deal. The story caused a jolt.
Then on Friday a Canadian Press report told a different tale: “A string of calming comments from U.S. President Donald Trump about NAFTA has proponents of the agreement breathing some relief that his trigger finger is far from the button that would blow up the deal.”
Good news also came from our side of the table: “Foreign Affairs Minister Chrystia Freeland said at a Liberal cabinet retreat in London, Ont., that Trump’s newfound patience on NAFTA renegotiations is ‘sensible’ and ‘constructive.’ ”
What should Canadians make of these stories? Are they cause for concern? Or much ado about nothing?
The truth is somewhere in the middle. The United States is of course our largest and most important trading partner. We need a good deal with them.
While not everyone is happy with NAFTA, it has served us relatively well. It never caused the doom and gloom that some voices predicted in the 1980s.
Then again going in a different direction isn’t the end of the world either. The big question is what comes next. If Trump does walk away from NAFTA, we will revert to a number of standby provisions, such as the World Trade Organization rules.
At that time, negotiations can begin for a bilateral trade deal that does not involve Mexico. Experts and analysts all agree that there’s no saying what will come of such a deal: we could be better or worse off from it.
Prime Minister Justin Trudeau and Foreign Affairs Minister Chrystia Freeland have for the most part been capable and committed in their efforts. Conservative Leader Andrew Scheer is right to add his support to the home team.
There will be more ups and down to come. Don’t sweat them.
— Postmedia Network