NAFTA at stake amid backroom battles in the White House
[ http://www.theglobeandmail.com/report-o ... e34714409/ ]
ADRIAN MORROW WASHINGTON — The Globe and Mail April 15, 2017
EXCERPT:
Two other key moves – the confirmation of U.S. Trade Representative Robert Lighthizer and 90-day notice to Congress of the intent to open renegotiation – have still not taken place, meaning formal talks will not start until midsummer at the earliest.
It is all leaving a trilateral trade zone worth $1.1-trillion (U.S.) in limbo, exposing one of the world’s most lucrative economic partnerships to the whims of a chaotic administration and a fractious Congress.
The White House declined to discuss the split. “As of now we’re not ready to comment on NAFTA talks,” spokeswoman Natalie Strom wrote in an e-mail. Neither Mr. Ross’s nor Mr. Mnuchin’s offices responded to requests for comment.
The closest the Trump administration has come to setting out specific NAFTA demands was a draft of its notification letter to Congress, which leaked two weeks ago. The missive listed a wide-ranging set of negotiating objectives: A “safeguard mechanism” that would allow the United States to slap temporary tariffs on Canadian and Mexican goods if a sudden influx of them hurts U.S. companies; the scrapping of trade panels that have consistently ruled in Canada’s favour in the softwood-lumber dispute; tightening “rules of origin” requirements on goods produced in the NAFTA zone.
Much of the language, however, was vague – hinting at U.S.-content requirement for manufactured goods, for instance, but not saying it explicitly. And the 40-point list of objectives is exhaustive, alternating between more targeted provisions to beef up the deal – gaining more access for U.S. agricultural exports, for example – along with tougher protectionist measures that could tear it apart.
“The letter reflects the diversity of viewpoints that exist within the administration, and I think that’s going to continue,” said trade lawyer Stephen Claeys, a former adviser to ex-president George W. Bush and congressional Republicans. “What they do with it now is going to depend on how the dynamics of the administration work out.”
Scotty Greenwood, senior adviser at the Canadian-American Business Council, says the White House appears to be keeping its options open as it tries to simultaneously push forward with renegotiation and get congressional backing.
“It’s probably purposefully vague because they’re not completely sure what they are going to do. They’re trying to build a bike and ride the bike at the same time,” she said. “They’re leaving themselves room to interpret it later.” . . . .