Canada’s chief negotiator says too soon to tell if new NAFTA by year end

Submitted by admin on Mon, 10/16/2017 - 06:16

...solid progress is being made in talks to rewrite the NAFTA, but it’s too soon to tell if a deal can be reached by the year-end deadline set by the United States, [Steve Verheul said Sunday as negotiators wrapped up the second day of talks in the third round of negotiations.]

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.’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 mid-term elections and in next year’s Mexican election.

Verheul suggested it’s premature to conclude that a year-end deal is impossible but, at the same time, he declined an opportunity to say he’s confident the deadline can be met.

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

This was excerpted from 25 September 2017 edition of The Canadian Press.