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First step in NAFTA talks

The Trump administration has taken an early step in renegotiating the North American Free Trade Agreement, sending the U.S. Congress a draft list of priorities for the negotiation that expresses hope for change in a broad range of areas.

Now Congress will be involved in revising that list.

Then the administration will issue a formal notice that it wants to renegotiate the deal and spend a minimum of 90 days consulting lawmakers and industry, meaning formal talks with Canada and Mexico could begin in the summer or fall.

This preliminary consultation is required under the so-called fast-track law that allows trade deals to pass Congress with a simple majority and an up-or-down vote, with no amendments.

The letter includes vague references to making changes in a number of areas, including agriculture, government procurement, tax policy, intellectual property, rules of origin for things like car parts, telecommunications and dispute resolution.

"The persistent U.S. deficit in goods trade with Canada and Mexico demands that this administration take swift action to revise the relationship and respond to 21st century challenges," said a copy of the draft letter, obtained by The Canadian Press.

"Most chapters are clearly outdated and do not reflect the most recent standards in U.S. trade agreements."

Some U.S. media interpreted the Trump team's draft as mild. A Wall Street Journal headline said: "Trump administration may seek only minor adjustments to NAFTA."

The letter does avoid the more strident language of Donald Trump's campaign rhetoric against NAFTA and actually refers to the importance of the trade bloc. Signed by the interim U.S. trade representative, it says: "Our shared borders also mean shared goals, shared histories and cultures, and shared challenges."

Yet it hints at important changes — seemingly greater than the minor tweaks the president referred to when he met Prime Minister Justin Trudeau.



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