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WASHINGTON – The Trump Administration and Congress are on the right track with the North American Free Trade Agreement, as the White House prepares to release the text of a trade deal with Mexico that is not Does not include Canada.
Steven Mnuchin, the Treasury Secretary, said Thursday that if the administration still hoped to reach an agreement with Canada, he was confident that lawmakers would authorize a revised NAFTA that would include only Mexico.
"If, for some reason, we do not reach an agreement with Canada, we will have an agreement with Mexico, an excellent agreement," Mnuchin told an event sponsored by The Hill newspaper. "I am convinced that Congress will pass this."
Legislators have, however, expressed serious reservations about any agreement that does not include Canada, suggesting that it would not have the right to vote.
Mnuchin's remarks came one day after President Trump criticized Canada, saying he had abused the United States in trade and threatened to impose tariffs on Canadian cars if an agreement was not reached. not concluded. At a press conference, Trump said he rejected a request by Canadian Prime Minister Justin Trudeau for a meeting and criticized Canada's trade negotiator, Chrystia Freeland, Minister of Foreign Affairs. "We do not like their rep," said Trump.
Mr. Mnuchin gave a more diplomatic tone, emphasizing the importance of the trade relationship with Canada and expressing optimism about the possibility of settling the few "outstanding issues".
"We have an agreement with Mexico," he said. "Why should not we be able to reach an agreement with Canada?
The NAFTA negotiations have shaken the nerves of the members of Congress whose constituents depend on trade relations with Canada and Mexico.
Still, the White House is expected to release the text of the agreement reached with Mexico as early as Friday, suggesting that the White House will not wait for Canada to sign the deal.
Robert E. Lighthizer, US Trade Representative, met with key legislators on Thursday to present what Senators said was a pessimistic assessment of the state of negotiations with Canada. But he left several questions unanswered, including whether Mr. Trump was ready to withdraw from Nafta if Canada did not sign a new agreement – and what rules would likely govern trade with Canada if Congress
Sen. John Thune, a Republican from South Dakota, told reporters that Lighthizer told lawmakers that the United States and Canada were very far away from the negotiations. "I'm not optimistic at the moment," said Thune.
Senator Debbie Stabenow, Democrat of Michigan, said Canada could join the agreement with Mexico by November, even though the administration is submitting a bilateral text to Congress this week. But any agreement, she said, "must be North America to be the most effective."
Congressional staff warned that the administration would find little support for Capitol Hill for an agreement that completely excluded Canada and that there was little appetite to withdraw from NAFTA without a trilateral agreement to replace it. They also said that the deal with Mexico alone would not be likely to be voted in the House if the Democrats gained control of the House in the November elections.
Senator John Cornyn, Republican of Texas, said that an agreement that would exclude Canada would be much harder to pass in the Senate because it might not be eligible for the provisions of the Trade Protection Authority to ratify such a measure. with only 51 votes.
While some Senate Democrats agree with some of Trump's Nafta review objectives, they made it clear on Thursday that they would politically punish him for excluding Canada.
"It would be a monumental mistake to do it without Canada," said Oregon Sen. Ron Wyden, the largest Democrat on the finance committee. "It's basically the surrender of Nafta."
Texas Democrat representative Lloyd Doggett said Lighthizer had announced that he would issue the text of the agreement with Mexico this weekend and that he hoped Canada would join its provincial election in December. beginning of October. Mr. Doggett said that he was not prepared to say he would reject an agreement with Mexico, but said that he had urged Mr. Lighthizer to continue working for them. Canadians.
"These supply chains are very important and it is important that this does not translate into a bilateral agreement," said Mr. Doggett.
A staff member said Mr. Lighthizer had raised the possibility of imposing additional tariffs in Canada, similar to those Mr. Trump had imposed on China if Canadians could not reach out to the states. -United. The United States has so far imposed tariffs of $ 250 billion on Chinese products such as machinery, electronics and fish.
Canada is already dissatisfied with the administration's steel and aluminum tariffs, which Mr. Trump put in place earlier this year. Mr. Trump, meanwhile, is angry about Canada's dairy tariffs and has threatened to tax cars made in Canada if they do not allow US dairy farmers to have more access.
On Thursday, Mr. Trudeau did not hesitate to say that Canada would not comply with US requirements, including eliminating a dispute settlement mechanism that would allow NAFTA countries to challenge themselves outside of formal court systems. countries.
"The Americans are finding the negotiations difficult because Canadians are tough negotiators, as they should be," Trudeau said in Ottawa. "But a good, fair deal is always possible."
