Renegotiation of NAFTA is moving slowly ahead

In addition to the constraints created by the upcoming electoral processes, negotiators are under pressure to reach an agreement quickly to allay concerns that the United States could terminate the agreement, a threat made repeatedly by U.S. President Donald Trump.

The Montreal gathering was the sixth meeting since Mr Trump requested to renegotiate the deal previous year. “I’m a free-trade guy”. Reports in July suggested that the European Union, a major exporter of steel to the U.S., was considering counter-measures on United States agricultural products if Trump went through with a restriction on steel. In the U.S., Democrats have just published a letter urging their country to demand far higher labour standards from Mexico. At this round, Canada proposed a major overhaul: include the value of intellectual property in the calculation, instead of just parts, thereby inflating USA numbers while being less disruptive to the industry.

“As we head into planting season, farmers need the confidence that exports to America’s two most important agricultural export markets will remain viable”, said Kuehl, who was also on hand in Montreal. A number of lawmakers voiced opposition last week when the administration imposed tariffs on imported solar panels and washing machines.

But according to the US Trade Representative, when analysed, the US found the automobile rules of origin idea “may actually lead to less regional content than we have now and fewer jobs in the United States, Canada, and likely Mexico”, adding “this is the opposite of what we are trying to do”.

Toomey said he found the tariff decision “very disturbing” and it contributed to the urgency to send a message on NAFTA.

Jeff Moseley, CEO of Texas Association of Business, which has lobbied heavily on the issue, praised the “entire” Texas delegation Tuesday, both Republicans and Democrats, for being “diligent in their efforts to promote the tremendous benefits of NAFTA” on the Texas economy.

“But if you want to make it ideal and say that perfection is how I see the world and it has to be the way I want it, then I don’t think we’re gonna get there”.

Negotiators from Canada, the U.S. and Mexico bore down on key issues in week-long talks in Montreal, averting a feared collapse of the bloc, which binds together almost 500 million consumers. Trade officials agreed on a new treaty’s anti-corruption provisions and narrowed the gaps over customs issues.

A Canadian government source, speaking on the condition of anonymity, noted Lighthizer had not speculated about withdrawal and said the US official had been more positive in private than during previous rounds.

Negotiators from the three countries have been meeting since August in hopes of rewriting the 24-year accord, which the president has repeatedly assailed as unfair to his working-class base.

Lighthizer also used his closing statement to address what he called a “misunderstanding” that the United States is being unfair in the negotiations.

U.S. Trade Representative Robert Lighthizer said the Canadian idea would allow too many parts from China and other low-priced Asian countries to be included in the autos exempt from tariffs under NAFTA. “That is a good sign”, he said. This politically sensitive file, which touches rural ridings especially in central Canada, tends to get pushed down to the wire in trade negotiations.

Smith is a member of the Ways and Means Committee that has jurisdiction over trade.

Lighthizer added he hopes the talks will accelerate soon, as the negotiators head to Mexico City for a seventh round of negotiations from February 26 to March 6.