Wednesday, 26 July 2017

NAFTA, Trump and Canada: A guide to the trade file and what it could mean for you

NAFTA, Trump and Canada: A guide to the trade file and what it could mean for you

For more than 20 years, NAFTA has tied the continent�s economy together. Now, Washington wants to give the trade deal a massive overhaul in talks starting this summer. Get caught up on The Globe�s latest coverage of what that means 

Trade: Where we are right now

  • U.S. Trade Representative Robert Lightizer appears to have wrested control of the NAFTA file from U.S. Commerce Secretary Wilbur Ross, President Donald Trump�s original point man on the trade deal, The Globe and Mail has learned.
  • Sources say Mr. Lighthizer has made it clear to Canada�s Foreign Affairs Minister that he answers only to the President and Congress, and any bilateral issues should go through him or his general counsel, Steven Vaughan.
  • A senior government official said Mr. Ross, a 79-year-old billionaire, is still responsible for major day-to-day issues like the softwood lumber dispute.
  • One of the U.S. demands in NAFTA talks is to scrap its existing system of independent dispute-settlement panels. That is a �red line� that the Trudeau government will not cross, a senior official told The Globe, saying Canada is ready to walk away from talks if the U.S. won�t budge on the issue.
  • If either Canada or Mexico withdraw from the talks, NAFTA stays as it is. Mr. Trump, who threatened to terminate the NAFTA deal months ago, may then make good on his threat.
  • Asked about The Globe�s report in Ottawa on Tuesday, Prime Minister Justin Trudeau said the panels were �essential� to the revamped deal, but stopped short of saying he�d pull out of talks if the American side insists on removing them.
  • Mr. Trudeau spoke alongside new B.C. Premier John Horgan, who was in Ottawa ahead of a Washington trip where he�ll speak with Mr. Ross about the softwood dispute, which affects B.C.�s biggest U.S. export. Mr. Horgan and Mr. Trudeau saidresolving the softwood issue before NAFTA talks begin would clear an important hurdle for Canada�s negotiators. �We need to get it off the table,� Mr. Horgan said.
  • The first round of NAFTA talks will be held in Washington on Aug. 16-20. These are the Trump administration�s priorities for the talks, as laid out by Mr. Lighthizer earlier this month.
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