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Freeland heads to Mexico in effort to finalize new NAFTA revisions

Finalizing new NAFTA

Deputy Prime Minister Chrystia Freeland is to meet American and Mexican officials in Mexico City on Tuesday amid reports a deal to revise the new North American free-trade agreement is close to completion.

The federal government revealed Freeland's itinerary late Monday following a day of furious speculation about the state of the United States-Mexico-Canada trade deal — and concerns from Canada's aluminum sector about what the agreement could mean for the industry and workers.

Prime Minister Justin Trudeau and U.S. President Donald Trump talked directly about the deal Monday, Trudeau's office reported, without details.

The U.S.-Mexico-Canada Agreement was signed by the three countries last year, but U.S. ratification has been stalled for months as congressional Democrats and organized labour have bickered with Mexico over labour rights as well as the agreement's treatment of steel and aluminum.

There were concerns the agreement, which aims to update the 25-year-old North American Free Trade Agreement, would not be approved before Congress disperses until 2020 and its focus shifts to next fall's presidential election.

Freeland was cautious Monday amid chatter of an imminent deal.

"In the lives of ordinary Canadians, there is perhaps no issue in our relationship with the United States that matters more than trade," she said in question period.

"The prime minister raised the ratification of the new NAFTA and other trade issues in his meeting last week with the president and we have been working intensively, including many conversations over the weekend and this morning with our American partners, on getting the deal finalized."

Trump weighed in Monday, saying: "I'm hearing very good things, including from unions and others that it’s looking good. I hope they put it up to a vote, and if they put it up to a vote, it’s going to pass.

"I'm hearing a lot of strides have been made over the last 24 hours, with unions and others."

The breakthrough appears to have followed Mexico accepting — with a five-year phase-in period — a U.S. demand to tighten the definition of North American steel in a section of the agreement dealing with where cars and their parts can be said to originate.

Products that officially originate in North America get more favourable treatment than ones that originate abroad but come through one of the countries in the agreement.

However, Mexican Foreign Secretary Marcelo Ebrard said his country would not accept the same tighter definition for aluminum because the raw materials are not produced in Mexico.

Mexico also rejected U.S. demands for American inspectors to be sent in to ensure Mexican auto workers are being paid $16 per hour on average, though U.S. officials were said to have accepted Mexico's offer to allow dispute-resolution panels to review labour-law compliance.

Labour unions in the U.S. were to be briefed on the proposed amendments on Monday with the hope they would agree to the changes, which would pave the way for the Democratic leaders to offer their own approval.

The Trump administration as well as the Canadian and Mexican governments would then be asked to agree formally to the amended deal before introducing legislation to put it into force.



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