Trade experts agree Canada has plenty of NAFTA leverage

President Donald Trump has often lambasted the North American Free Trade Agreement, calling it the worst in deal in American history while asserting that it has driven U.S.jobs overseas.

In a statement released on Tuesday, McCain urged the United States president not to impose new barriers that would hurt trade with America’s closest trading partners, arguing that over the past two decades under NAFTA, trade with Mexico and Canada had increased and more jobs created. “The answer is no”, says Ottawa-based trade worldwide trade strategist Peter Clark, who was involved in the NAFTA and Canada-US free trade negotiations.

In the run-up to NAFTA talks, the Canada’s Liberal government conducted a massive outreach to US officials for more mutual importance of NAFTA to jobs and prosperity on both sides of the border. Since 1994, trade among the NAFTA partners has roughly tripled, making this a $19 trillion regional market, with 470 million consumers.

Withdrawing the United States from the Trans-Pacific Partnership has been Trump’s most meaningful trade action yet, but that was largely an opportunity lost, not a rollback of rules and practices already baked into countless industries.

A glimpse of Trump’s tough road ahead can be seen by looking back at a 2015 vote to give former President Barack Obama “trade promotion authority” to finish the 12-nation TPP deal. These trade pacts can be good for all involved but not if we allow corporations to devastate the environment or worker health.

US negotiators should prioritize changes that boost American jobs, exports, and economic growth.

Among the five largest trading relationships the US has with foreign countries – China, Canada, Mexico, Japan and Germany, its trade deficit with Canada is the smallest by far. US dairy farmers strongly dislike the system.

Another likely source of dispute is Washington’s desire to eliminate an infrequently used dispute resolution process under which a NAFTA panel can overrule individual countries’ decisions on dumping and unfair subsidies.

“What happened with NAFTA is that Canadian oil and gas became North American oil and gas and we have very little control of it”, said Maude Barlow, honorary chair of the Council of Canadians, in an interview. “We will come to the table with goodwill, and Canada’s characteristic ability and willingness to seek compromise and find win-win solutions”. But then on a subsequent trip to Wisconsin, Mr. Trump said there were problems, especially over trade rules affecting diary and soft lumber. The obstacles may be formidable (and like most trade issues, mind-numbing). President Trump has threatened to raise those levels, which would make Mexico a less attractive destination for foreign auto manufacturers.

Foreign Affairs Minister Chrystia Freeland Monday dropped a gentle hint that she might walk away from trade talks with the United States if the deal is not good enough.

– More effective protection of intellectual property and updated provisions to account for the digital economy and e-commerce.

He will find out how hard it is to get an agreement that satisfies workers “shafted by NAFTA” and the interests benefiting from cross-border sales.

Theoretically, Mexico, which is the real target in Trump’s cross-hairs, is even more vulnerable than Canada.