Trudeau Suggests Trump’s Behaviour Is Why Canada Needs Chapter 19 In NAFTA

Trudeau Suggests Trump’s Behaviour Is Why Canada Needs Chapter 19 In NAFTA

Trudeau Suggests Trump’s Behaviour Is Why Canada Needs Chapter 19 In NAFTA

William Reinsch, a former Commerce Department trade official, said the Canadians are enduring Trump's abuse to secure a deal that preserves a lucrative continental trading bloc. "It won't be fine for Canada".

The two lead ministers on NAFTA held lengthy meetings in Washington on Wednesday.

Foreign Affairs Minister Chrystia Freeland went out of her way to praise her counterpart, US trade czar Robert Lighthizer, saying he was acting with "good faith" and "good will".

"The atmosphere continues to be constructive and positive. But one of the things that we know is that once you've gone and divided citizens into small groups ... it actually hurts you capacity to govern for the good of all", said Trudeau. The key focus, however remains on Friday's keenly watched employment details, both from the United States and Canada.

The sudden emergence of Canada's exemption for its cultural industries as a late-stage NAFTA snag is being met by skepticism from trade experts who have closely followed the deal's year-long renegotiation.

Data released on Wednesday showed the USA trade deficit hit a five-month high of US$50 billion.

"Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off", he tweeted on Saturday.

Trudeau offered some of his sharpest criticism of the unpredictable American president, saying that Canada won't give an inch to Trump's desire to scrap NAFTA's Chapter 19 dispute resolution panels. "And we know we have a president who doesn't always follow the rules as they're laid out", Trudeau said.

Foreign Affairs Minister Chrystia Freeland and Canadian negotiators are doing a good job and are keeping him updated, he said. "He made some important comments". In bilateral talks with the U.S., Mexico successfully sidestepped the sunset clause, although their agreement includes a "review" every six years, with the spectre of termination if problems can't be resolved.


Why should Canada not continue to negotiate with resolve rather than accommodate the Trump timeline? They were rushing to bridge their differences by the end of August so Canada could join a preliminary pact the USA had struck with Mexico just days earlier. But the prime minister noted Canada has shown "a certain amount of flexibility in signing other trade deals".

Trudeau said Tuesday he would refuse to sign a new NAFTA unless it preserved the exemptions that have protected Canada's cultural sectors, including broadcasting, publishing and music, for decades.

She said it was never brought up except in one context: pushback by Americans who complained about the Canadian regulator's decision to end the practice of swapping out American ads for Canadian ones in the big broadcast, a decision that undercut the National Football League and Superbowl producers' ability to sell ads at a higher price. The president has also publicly threatened Canada with more tariffs on vehicle imports if it does not join in.

The new rules went into effect in time for the Super Bowl in February 2017.

"It is inconceivable to Canadians that an American network might buy Canadian media affiliates, whether it's newspapers or TV stations or TV networks".

Freeland's meeting with US trade czar Robert Lighthizer resulted in fresh marching orders for their respective negotiating teams. "The United States is exploring avenues to address these concerns", Lighthizer wrote.

Canada and the U.S. need to present a text to the U.S. Congress by October 1 in order to join the deal the Trump administration signed with Mexico last week, trade analysts say.

The president told Congress he wants to sign a new NAFTA- even if it's only with Mexico- before the end of the year.

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