US lawmakers at NAFTA talks express optimism about modernizing trade pact

MONTREAL: US lawmakers attending NAFTA talks in Montreal expressed optimism that efforts to update the trade pact would avoid collapse and start gaining momentum and said they urged negotiators not to bind themselves to a specific deadline.

“There’s just an air of optimism,” said US Representative Dave Reichert, a Republican who chairs the House Ways and Means trade subcommittee.

He spoke to reporters after a briefing from US Trade Representative Robert Lighthizer.

Reichert said Lighthizer was ‘hopeful’ about the negotiations but also “recognizes that there’s a great deal of work to be done.”

Officials from the United States, Canada and Mexico will wrap up the sixth of seven planned rounds of talks on the North American Free Trade Agreement in Montreal on Monday, with little sign of agreement on the toughest US proposals to overhaul the US$1.2 trillion pact.

“You can point to the fact that they’re already talking about additional rounds, where not too long ago, we were wondering whether or not there would be continued negotiations,” Reichert said.

Reichert led a delegation of 10 other Ways and Means members to Montreal to meet with negotiators from all three countries and express support for modernizing the trade agreement.

Some trade-focused lawmakers have complained that USTR has not adequately informed them about US proposals in the talks. Any deal for a NAFTA update will need Congress’ approval.

US President Donald Trump, who blames the 1994 treaty for job losses and a big trade deficit with Mexico, has repeatedly threatened to withdraw unless major changes are made. Markets have been nervous about the potential economic turmoil.

With the slow progress so far, Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo will meet in Montreal on Monday to review what has been achieved.

They are expected to announce that the anti-corruption chapter has been largely completed, along with progress on some other less controversial areas.

But a deep gulf remains over US demands to boost regional auto content requirements and require 50 percent US content in North American-built vehicles.

Other major sticking points are Washington’s demands that NAFTA largely eliminate trade and investment dispute-settlement systems and contain a ‘sunset’ clause to force renegotiations every five years. — Reuters