Canada's minister of foreign affairs is scheduled to hold talks in Washington today in hopes of reaching a trade agreement with the United States, an urgent response after President Donald Trump announced a deal with Mexico on Monday that left out Canada.
Canadian Foreign Minister Chrystia Freeland said late on August 29 that talks were at "a very intense moment" but said there was "a lot of good will" between Canadian and US negotiators.
Foreign Affairs Minister Chrystia Freeland, emerging Wednesday evening from her second meeting of the day with her US counterpart, said officials would be working late into the night - and possibly all night - on potential "landing zones" where both parties can agree. But suddenly the heat seems to be on to have Canada sign a new NAFTA deal by the end of the week.
"Canada's largest dairy-producing provinces are divided on ending supply management as part of trade talks, with roughly one-in-three in Quebec (35%) and Ontario (34%) preferring to keep the program, and similar numbers preferring to end it (39% in Ontario; 32% in Quebec)" says the Angus Reid website.
Mexico agreed to eliminate dispute settlement panels for certain anti-dumping cases, a move that could complicate talks with Canada, which had insisted on the panels. Congress approved the NAFTA; they would have to approve US withdrawal, and change a whole slew of USA laws that implement the trilateral agreement. So has the U.S. business lobby, including the U.S. Chamber of Commerce. "The appearance of Canada as an irrelevant after-thought in NAFTA is a US frame designed exclusively to wrestle concessions from the Canadian side", says Adam Taylor.
"I think people must take him seriously".
Guajardo said if Ottawa and Washington fail to come to agreement, Mexico would have to return to the negotiating table to revisit some of the auto industry rules. "To change objectives and negotiate a bilateral deal with Mexico means that he would have to terminate the NAFTA, because the NAFTA binds all three countries", Herman said.
Mexico's peso strengthened against the United States dollar, as did the Canadian dollar, while the U.S. dollar index weakened slightly.
Does Canada have to sign on, too?
The new trade deal between the US and Mexico aims to catch up with the contemporary legal and regulatory environments of the technology sector. Otherwise the deal would need 60 votes, meaning multiple Democrats would have to support it.
"They gave on the sunset clause, which continues to be a red line for Canada and Mexico", Ambrose said. Investors have embraced the preliminary pact as good news for Canada's auto parts industry. USA stocks edged to record highs for a third consecutive session. Trump wants Canada to drop its supply management system that uses tariffs to control the price and supply of dairy products, protecting Canadian farmers from low-cost imports.
Prior to Monday's announcement, the Trump administration had been threatening tariffs of as much as 25 percent on vehicles imported from any country.
"It's time for our countries to resolve these issues and lock in an updated track agreement", said Steve Nelson, the group's president.
And his administration started a ticking clock, saying it would notify Congress of a deal on Friday whether or not Canada was involved.
But the TPA also says the final text of the deal doesn't have to be released until 60 days before signing. Congress needs to approve it in a process that will take several months, extending well into 2019.