Trump’s NAFTA goals setting stage for a fight

WASHINGTON— The Trump administration has released its broad goals for a new North American Free Trade Agreement (NAFTA) in mostly vague language that offers just enough specific clues to point to potentially tough negotiations ahead.

The U.S. says it wants more exports of its dairy products, wine and grains; freer trade in telecommunications and online purchases; new rules on currency manipulation; an overhaul of the dispute-settlement system; and more access for U.S. banks.

AWashington trade expert who advises the Canadian government didn’t flinch when asked what this means for NAFTA talks, which are scheduled to start next month: “Longer, rather than shorter,” said Eric Miller, a consultant at Rideau Potomac who advises Industry Canada.

“It will be pretty intense and hardfought . . . Don’t expect it to be finished in less than eight months. And expect Canada to have to fight hard for issues it cares about.”

Some of the issues might be hotly debated, even within Canada.

For example, the demand on online purchases could pit bargain-hunting Canadian consumers against bricksand-mortar retailers.

The U.S. wants to increase the amount Canadians can buy online without paying an import tax by 4,000 per cent.

The 16-page list contains some elements that seem confusing.

It says the U.S. will demand more opportunities for American suppliers for government procurement abroad, such as construction projects. But in the next breath, it insists on preserving Buy American rules that limit such rights for foreigners.

Of that contradiction, Miller joked: “It’s called the mercantilist dream — we want you to open to us, but we don’t want to open up to you.”