Our ambassador to U.S. sees long negotiation: “We’re not going to rush into a bad deal.”
David MacNaughton says he wants quick NAFTA deal, but won’t take a bad one
“The president said what he’s looking for is balance. We’ve got balance. I think we can improve it, but I don’t think it needs a dramatic overhaul.” DAVID MACNAUGHTON CANADA’S AMBASSADOR TO THE U.S.
EDMONTON— The Trump administration’s “laundry list” for a renewed North American Free Trade Agreement is long, but doesn’t signal massive changes ahead, says Canada’s ambassador to the U.S.
“The president said what he’s looking for is balance. We’ve got balance. I think we can improve it, but I don’t think it needs a dramatic overhaul,” David MacNaughton said Tuesday before briefing premiers at their annual conference.
The U.S. list, with more than 100 objectives listed in 18 pages, includes “Buy America” provisions that could block Canadian companies from bidding on U.S. contracts, scrapping dispute resolution panels and forcing Canada to boost duty-free shopping limits for its citizens.
“I don’t think there were any real surprises,” MacNaughton added, acknowledging there is pressure to renegotiate as quickly as possible because uncertainty is delaying business investment decisions.
“But having said that, we are not going to rush into a bad deal,” he told reporters. “There are many things they raised that we take quite a different position.”
“This is an opening position paper on what is going to be a long negotiation.”
Behind closed doors, MacNaughton sought feedback from the premiers with negotiations expected to start in mid-August.
Some were relieved the Washington list was toned down from some of President Donald Trump’s campaign rhetoric.
“So let the tweaking begin,” Manitoba’s Brian Pallister said.
Ontario Premier Kathleen Wynne said state governors are well aware that job growth on both sides of the border depends on free and open trade between the two countries, given the inter-dependence of the Ca- nadian and U.S. economies.
Many states count Ontario, for example, as their biggest or secondbiggest trading partner, given the flow of goods, such as cars and auto parts.
“We don’t want to disturb something that is working. That is the tone,” added the premier, who has met with more than 20 governors in recent months and went to their national convention in Rhode Island last week with Prime Minister Justin Trudeau. MacNaughton echoed that point. “There are many, many U.S. industries that depend on the Canadian market. I’ve heard from American business and governors that their first priority in this negotiation is do no harm.” The ambassador would not say what retaliatory measures or negotiation positions Canada would consider given some of the U.S. demands, such as greater access to the Canadian market for their financial and telecommunications industries.
“It would be pretty unwise for me to talk about what we’re prepared to put on the table and not put on the table.”
But MacNaughton did send a warning that Canada’s supply management system for dairy products — a market to which Trump also wants greater access for American dairy farmers — will be defended in talks.
“We think it works for Canadians,” MacNaughton said, taking a shot at the “heavily subsidized” U.S. dairy and sugar industries.
“We’re happy to talk about opening theirs,” he added.
Quebec Premier Philippe Couillard said the Americans are dreaming in hopes of concluding negotiations in a few months, calling that “totally not realistic” given the complexities of trade and looming elections in Mexico.
“It will take years.”