This week the Canadian Foreign Affairs Minister Chrystia Freeland returned to the US Trade Representative's office to continue discussions on North American Free Trade Agreement (NAFTA). This week's talks are being described by several sources with direct knowledge of the situation as "tense," "frank" and "slow," especially on the significant issues such as auto tariffs and the Section 232 steel and aluminum tariffs. Additionally, Canada continues lobbying for the retention of the independent dispute resolution system in NAFTA (Chapter 19), while the US Trade Representative Robert Lighthizer has formally requested it be eliminated.
Canada is seeking assurances from the US trade officials that it will be recognized as a special trading partner and will be protected from present and future punitive tariffs. Canada has consistently voiced its position that it is not a threat to the national security of the US and, therefore, should not be included in Section 232 tariffs.
The US team, which reached an agreement in principle with Mexico last month, is now pushing to get a deal with Canada before Oct. 1 — a deadline set in hopes of hitting the congressional timeline required for a renegotiated NAFTA to be signed before Mexico's presidency changes hands on Dec. 1.