Foreign Affairs Minister Chrystia Freeland makes an announcement and holds a media availability on Canada’s response to the Rohingya crisis at the National Press Theatre in Ottawa on Wednesday, May 23, 2018. Freeland is headed to Washington for a two-day visit beginning Tuesday as talks to modernize the North American Free Trade Agreement hang in the balance. THE CANADIAN PRESS/Sean Kilpatrick

Foreign affairs minister heads to Washington as NAFTA hangs in balance

Canada’s latest reprieve from potentially crippling U.S. tariffs on imports of steel and aluminum expires June 1

Pessimism is hovering as Foreign Affairs Minister Chrystia Freeland embarks on a two-day visit to Washington starting Tuesday, with talks to modernize the North American Free Trade Agreement hanging in the balance.

Freeland has been a fixture in the U.S. capital in recent weeks, taking part in high-level NAFTA negotiations with U.S. trade czar Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo.

Freeland’s office isn’t saying if those talks are the main purpose of her visit.

But Prime Minister Justin Trudeau has been talking by phone with U.S. President Donald Trump and Mexico’s Enrique Pena Nieto in recent days, despite dwindling hope of reaching a deal.

Time is of the essence: Canada’s latest reprieve from potentially crippling U.S. tariffs on imports of steel and aluminum expires June 1, and there are fears they could go into effect without a NAFTA deal in place.

The three countries have been working around the clock in hopes of getting a deal in time for the current iteration of the U.S. Congress, and ahead of what’s expected to be a consequential election in Mexico July 1.

Freeland’s office had no comment Monday. But NAFTA stakeholders and observers remain skeptical that she will be able to accomplish anything substantial.

Jerry Dias, president of Unifor, has been a constant presence at almost every NAFTA discussion. But the head of Canada’s largest autoworkers union won’t be in Washington this time, convinced there remains “no chance” of progress by week’s end.

The rules governing autos have been a persistent thorn, with the U.S. seeking to stem the loss of manufacturing jobs to Mexico, a view Canada broadly shares. The continental content of what defines a North American-made automobile and the relatively low wages of Mexican workers have been the main sticking points.

Dan Ujczo, an American trade lawyer with Dickinson Wright PLLC, described Freeland’s latest visit as a “Hail Mary pass” that she will have much difficulty completing.

The best she could accomplish would be a deal in principle on autos, which would lead to a continuation of the current steel and aluminum exemptions, with the three countries attempting to finish the job next year, Ujczo said.

Even if the three countries somehow reached a full agreement on NAFTA this week, a deal has no chance of ratified in the U.S. this year, he added.

Trudeau spoke with Trump on Friday about bringing the negotiations to a timely conclusion, and had a similar call with Pena Nieto a day earlier.

The prime minister also expressed his “strong concerns” regarding the U.S. threat to slap tariffs of up to 25 per cent on vehicle imports, given the integrated nature of the two countries’ auto industries, his office said.

Prior to the call, Trudeau said publicly he planned to tell Trump the move would have an “incredibly negative effect” on the American economy.

The U.S. move likely stems from the difficult efforts to rewrite NAFTA, the prime minister added.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Authorities call for calm as fires burn near Zeballos

Authorities are asking residents not to panic as several wildfires burn near… Continue reading

B.C. declares state of emergency as more than 560 wildfires rage

This is only the fourth state of emergency ever issued during a fire season

Port Hardy Fire Rescue knocks down wildland fire

PHFR members responded to the scene, located the fire, and contained it to the immediate area.

Second annual Port McNeill & District Chamber of Commerce golf tournament

Golf Holes #2 and #6 are Hole-in-One opportunities, each with a cash prize of $25,000!

No taxes paid by Neucel, Doug Bondue Arena in Port Alice closes

“Neucel owes us a million dollars and it’s pretty hard to stay status quo when you’re short a million.”

Interim GoFundMe payments approved in Humboldt Broncos crash

$50,000 to be given to each of the 13 survivors and each family of the 16 people who died

Altidore nets 3 as Toronto drubs Whitecaps 5-2

Vancouver falls 7-4 on aggregate in Canadian Championship final

Ottawa intervenes to get B.C. ball player, 13, to Little League World Series

Before immigration issue was resolved, Dio Gama was out practicing the game he loves Wednesday

Pet goldfish invades small B.C. lake

Pinecrest Lake is located between Whistler and Squamish

Mounties deployed to help B.C. communities affected by wildfires

RCMP officers heading to places particularly within central, northern and southern B.C.

Quebec sets aside $900 million for companies hurt by U.S. tariffs

Premier Philippe Couillard says his government will make $863 million available over five years

B.C. company patents Sasquatch, the country’s first homegrown hops plant

Created by Hops Connect, Sasquatch hops are being grown commercially for the first time in B.C.

Farmers ponder impact of alternatives to pesticides being banned

The nicotine-based pesticides scientists have linked to a rising number of honey bee deaths will be phased out of use in Canada over a three year period starting in 2021.

Most Read