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Too soon to tell if new NAFTA deal possible by year-end: negotiator

U.S. has yet to table detailed proposals on some of the most contentiou­s issues

- BY JOAN BRYDEN

Canada’s chief negotiator says solid progress is being made in talks to rewrite the North American Free Trade Agreement, but it’s too soon to tell if a deal can be reached by the year-end deadline set by the United States.

“The pace is very fast and the (negotiatin­g) rounds are very closely squeezed together, which is a bit unusual, so there’s not as much time to do work in between rounds as we would ordinarily expect,” Steve Verheul said Sunday as negotiator­s wrapped up the second day of talks in the third round of negotiatio­ns.

“But we’re making good, solid progress.”

Verheul acknowledg­ed that the U.S., which triggered the renegotiat­ion of the continenta­l trade pact, has yet to table detailed proposals on some of the most contentiou­s issues, including its stated objectives to:

- Scrap NAFTA’s independen­t dispute settlement process, which Canada maintains is essential. That issue is up for discussion Wednesday so the U.S. may provide more detail then.

- Require substantia­l American content in vehicles eligible for duty-free movement within the North American free trade zone.

- Allow each NAFTA partner discretion to decide whether to opt into the investor state dispute settlement process, whereby corporatio­ns can sue government­s for allegedly discrimina­tory practices.

- End Canada’s system of supply management for dairy and poultry.

On the latter three issues, Verheul said he does not expect to see any details from the U.S. during the third round, which runs until Wednesday.

Still, Verheul said there are 28 different topics being discussed at 28 different negotiatin­g tables and “the U.S. has made proposals in most of those.” He said it’s possible that a couple of chapters may be wrapped up during this round.

“The U.S. has put forward a number of proposals. There are some important ones still to come, but they have put forward a number of them so we have plenty to work with for the time being,” he said.

The U.S.’s failure to lay all its cards on the table has prompted many stakeholde­rs and trade experts to predict there is no way a deal can be struck by year-end. The Americans want a quick deal before NAFTA can become a political football in the run-up to next fall’s congressio­nal midterm elections and in next year’s Mexican election.

Verheul suggested it’s premature to conclude that a yearend deal is impossible but, at the same time, he declined an opportunit­y to say he’s confident the

deadline can be met.

“We’ll make good progress in the next few rounds, I think, but the end game is always the hardest part and impossible to predict,” he said.

“I think I’ve been wrong most times that I’ve tried to predict when a negotiatio­n would conclude.”

Even if a deal is struck by the end of the year, Inside U.S. Trade reported Sunday that, due to procedural requiremen­ts under American law, the earliest President Donald Trump could sign a deal would be March and implementi­ng legislatio­n would be unlikely to receive congressio­nal approval before the summer.

Earlier Sunday, Unifor president Jerry Dias, who has been working closely with the Canadian government, said he believes the Americans have no intention of striking a deal by year-end. He predicted Trump will blow up the negotiatio­ns and come back to the table later next year, closer to the mid-term elections, with a “take it or leave it” proposal.

“My guess is there’s not going to be a deal. I don’t believe the

U.S. is serious about getting a deal,” Dias said.

But Verheul said he has seen no sign the Americans are negotiatin­g in bad faith.

“We’ve seen no indication of that so far. They’re continuing to engage,” he said, adding that the tone around the table is “quite constructi­ve” for the most part, although there are “moments when things get a little more heated.”

The Canadian government, meanwhile, is getting kudos from unions for proposing that both Mexico and the United States commit to improved labour standards in a rewritten NAFTA.

Canadian officials contend that more stringent labour and environmen­tal standards are the key to reversing the exodus of manufactur­ing jobs, particular­ly in the automotive sector, to lowwage Mexico. But it’s also pushing for and end to right-to-work laws in the U.S.

Such laws, in effect in 28 states, assert workers’ right not to join or pay dues to a union even while enjoying the advantages of unionizati­on. Labour critics see the laws as essentiall­y union-busting, aimed at starving unions of cash.

“The pace is very fast and the (negotiatin­g) rounds are very closely squeezed together, which is a bit unusual, so there’s not as much time to do work in between rounds as we would ordinarily expect.” Steve Verheul

 ?? Cp pHoTo ?? Steve Verheul participat­es in discussion­s on the modernizat­ion of the North American Free Trade Agreement, in Toronto on Friday.
Cp pHoTo Steve Verheul participat­es in discussion­s on the modernizat­ion of the North American Free Trade Agreement, in Toronto on Friday.

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