U.S. hears counter-proposals on NAFTA, and keeps listening
MONTREAL — Canada’s counterproposals on controversial American demands for a renewed NAFTA were not rejected out of hand Thursday by the United States — providing a glimmer of hope that the continental trade pact may yet be saved.
But even as Canadian officials were expressing muted optimism over that development, U.S. President Donald Trump muddied the waters with a mixed message about the fate of NAFTA.
In Davos, Switzerland, Foreign Affairs Minister Chrystia Freeland was able to discuss Canada’s counter-proposals with U.S. Trade Representative Robert Lighthizer. He kept his poker face, but at least he didn’t say no, according to Canadian officials.
The pair’s talk at the World Economic Forum resonated inside the ice-encrusted Montreal hotel where Canadian, American and Mexican negotiators have been holed up all in week in the makeor-break sixth round of negotiations to renew the North American Free Trade Agreement.
Canada’s normally circumspect chief negotiator, Steve Verheul, told reporters that the tone at the table was “reasonably constructive” and the talks were unfolding “reasonably well.”
Freeland and Lighthizer discussed the U.S. demands for higher continental content requirements for automobiles, elimination of NAFTA’s dispute resolution mechanisms, and for the addition of a five-year sunset clause, said a well-placed source. They also discussed Canada’s counter-proposals.
“He didn’t shoot anything down. They agreed on the need to make some progress,” said the source, who spoke on condition of anonymity because of the sensitivity of the negotiations.
“He was engaged, he asked questions ... They had a substantive conversation, not the same degree of granularity that they have at negotiations in Montreal.”
The source emphasized it was too soon to assess what that means.
Trump certainly didn’t add any clarity in an interview from Davos with CNBC. “NAFTA’s a horrible deal. We’re renegotiating it. I may terminate NAFTA, I may not. We’ll see what happens.”
When pressed, Trump replied: “Will it be renegotiated? We’re tying right now with Bob Lighthizer and the whole group. I think we have a good chance, but we’ll see what happens.”
Freeland, Lighthizer and their Mexican counterpart, Ildefonso Guajardo, will close the pivotal sixth round of NAFTA talks here on Monday.
Freeland told CNN in Davos that Canada is approaching the discussions with positive intent and sees real opportunities.