Mexican and Canadian officials on Thursday appeared to brush off the passage of an informal deadline set by the US Congress to reach a deal on revamping a continent-wide trade pact.
Even House Speaker Paul Ryan (R-Wis.) said there could still be some “wiggle room” to push an agreement through Congress this year, even if negotiations went past Thursday by a few days.
But President Donald Trump’s Trade Czar, Robert Lighthizer doused all hope for a quick fast-track of a NAFTA deal through Congress any time in the near future.
On Thursday night, Lighthizer put out a straightforward statement saying that the three countries “are nowhere near close to a deal” generating more uncertainty amid what has been weeks of intense negotiations.
Lighthizer specifically pointed out there were still ”gaping differences on intellectual property, agricultural market access, de minimis levels, energy, labor, rules of origin, geographical indications and much more” but the U.S. would remain engaged in the talks.
The statement did not mention two highly contentious issues, dispute resolution, and a so-called sunset clause. Nor did the statement mention the threat of steel and aluminum tariffs which are expected to start on June 1, 2018.
Lighthizer’s statement was a rebuff to the efforts of Canadian Prime Minister Justin Trudeau, Foreign Affairs Minister Chrystia Freeland, and several high-ranking staffers who were in the U.S. on Thursday urging a quick deal reports CBC Canada.
“We’re down to the point where a good deal is on the table,” Trudeau said. “We know that those last conversations in any deal are extremely important, so I’m feeling positive about this, but it won’t be done until it’s done.”
Automobiles and dairy products
In the mix of contentious discussions going on, Mexico scolded Trudeau on Thursday for his sales pitch in which he argued that the NAFTA autos changes would help the U.S. by bringing back some Mexican jobs. Mexico is in a presidential election period, and already is dealing with a number of political pressures.
Mexican Economy Minister Ildefonso Guajardo tweeted: “A clarification is necessary. Any renegotiated NAFTA that implies losses of existing Mexican jobs is unacceptable.”
The U.S. has a proposal to open Canada’s dairy market and establish seasonal barriers for Mexican agricultural exports, something that could cause some disagreement. Canada’s dairy market is protected by high tariffs and has been a key bone of contention by the U.S.
Last fall, milk prices in the U.S. were so low that many dairies in some portions of the U.S. Northeast ended up dumping their milk as production exceeded the capacity to process the product. Tom Vilsack, president of the U.S. Dairy Export Council and former secretary of the U.S. Department of Agriculture, called it “incredibly important” that any renegotiation of NAFTA include progress on “opening up” of the Canadian dairy market.
