No deal yet in US, Canada NAFTA talks

03 September, 2018, 18:40 | Author: Sheila Harris
  • Leon Neal  Getty Images North America

"We know that a win-win-win agreement is within reach and that's what we're working towards", Freeland said.

The withdrawal process would require Trump to give Mexico and Canada 6 months' notice of his intent to leave the pact. "It also seems to be working in Turkey; it seems to be working in Iran; it seems to be working in Russia where the sanctions are really hurting the Russian economy as well". "I think the key decision was freezing Canada out and then negotiating directly with Mexico".

Writing for the Star, Daniel Dale explained that while Bloomberg agreed to keep those remarks off the record, "the Star, which obtained the quotes from a source, is not bound by any promises Bloomberg made to the president, and it published the quotes after they became part of the critical negotiations". However, Canada and the US did not meet the negotiating deadline, and talks are to continue this week. Two of the sources said that Chapter 19 - which Canada wants to keep and the USA wants to scrap - has not yet been resolved. The U.S. -Canada talks will resume Wednesday. CTV News Canada notes, Gilles LeVasseur, a business and law professor at the University of Ottawa, said Trump's Saturday Tweets may suggest he could be nervous that he might fail to have Congressional support because Congress is pro-trade. "We make new deal or go back to pre-NAFTA!" "When you take your best friend, your greatest ally in the world and start squeezing them, you can win but I will tell you, the relationship will be damaged much longer than it will take the ink to dry on a new NAFTA deal", Heyman said.

Canada can sign on until Congress ratifies the deal, which will likely be at the end of November. "And it's pretty hard to see how that would work without having Canada in the deal", said Trumka. "Now we are using Congress and the states, especially governors, as a shield against a mercantilist president", Robertson said in an email exchange with the Star.

Another lingering sticking point is Chapter 19, set up to resolve disputes among the three countries and industry around how to implement NAFTA rules.

Others caution that Trump's tactics have badly damaged Canada-U.S. relations.

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"With good will and flexibility on all sides, a win-win-win outcome is achievable".

Trumka also said of Mr. Trump: "the things that he's done to hurt workers outpace what he's done to help workers", arguing that Trump has not come through with an infrastructure program and has overturned regulations that "will hurt us on the job".

One source said the USA has not been stonewalling Canada on the matter, but has actually been gaming out ways the dispute-settlement process could be reworked.

It's unclear where Canada and the USA stand in negotiations and whether NAFTA talks could soon come to a close. Trump has threatened to stick tariffs on Canadian-made cars if Canada does not agree to a revamped NAFTA.

If a new NAFTA were to eliminate Canada's protectionist supply management system - something Prime Minister Justin Trudeau has vigorously opposed - prices of dairy products would fall under the pressure of increased competition from south of the border, Lilly explained.


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