The seventh round of talks concerning the North American Free Trade Agreement (NAFTA) ended March 5 in Mexico City with a few accomplishments and long still road ahead.
The negotiators completed three chapters: Good Regulatory Practice; Administrative; and Sanitary and Phytosanitary Measures. This brings the number of completed chapters to six.
In closing comments on March 5, U.S. Trade Representative Robert Lightizer noted that although progress was made, “we have not made the progress that many had hoped in this round.”
In addition to the chapters mentioned, Lighthizer said the negotiators have also completed work on sectoral annexes related to chemicals and proprietary food formulas. He said progress is being made on telecommunications and technical barriers to trade, and an agreement was reached to include a chapter on energy. “These chapters are important to provide further evidence that all three countries want to upgrade and modernize NAFTA,” Lighthizer said. “But to complete NAFTA 2.0, we will need agreement on roughly 30 chapters.”
He went on to say that toward the end of such negotiations things tend to move more quickly, but time is running short. Upcoming elections in all three countries could hamper progress.
Mexico is slated to elect a new president on July 1. In Canada, elections will be held in Ontario in June and in Quebec in October; and finally, mid-term elections in the U.S. are coming in November. “All of this complicates our work. I fear that the longer we proceed, the more political headwinds we will feel,” Lighthizer said.
Canada’s Minister of Foreign Affairs, Chrystia Freeland, also offered comments during the closing session, saying, “From the outset of these talks last August, Canada’s approach has been to propose ideas and solutions that will benefit businesses and workers in all three countries. Canada remains completely committed to this goal.
“In these negotiations, we have been constructive, fair-minded and determined to reach not just any deal, but a good deal. That very much remains our approach.”
Freeland went on to say that Canada has many of the same goals that President Donald Trump has voiced—to help workers and the middle class. “This can and should be a shared project,” she said. “That’s because trade is not a zero-sum game. In trade we can all win. And we need to all win in order to reach an agreement that will benefit our people.”
Freeland also noted that the negotiation will be successful if it makes North America more competitive in the world and it creates more jobs. “North American competitiveness is essential to our economic prosperity, and to our ability to create globally,” she said.
While stressing that a three-way agreement is preferable, Lighthizer raised the possibility again of the U.S. pursuing bilateral deals with its partners. In an interview with the Televisa network, Mexico’s Economy Minister, Ildefonso Guajardo, responded to the notion of the three-country agreement moving to bilateral deals saying it “has to be a trilateral accord, given the conditions of integration in North America. It must be that way.”
In a press release from Mexico, it was noted that during the meeting Guajardo called on his counterparts in Canada and the United States to intensify the ministerial dialogue on the remaining topics and to follow up on them in a timely manner in order to “achieve substantive progress in the subsequent rounds.”
As the negotiations go on, National Cattlemen’s Beef Association (NCBA) Director of International Trade and Market Access, Kent Bacus, told WLJ, “We are encouraged by the progress on the Sanitary and Phytosanitary (SPS) chapter in NAFTA. Strong SPS provisions are critical for U.S. beef producers because they ensure trade and market access is based on sound science, not arbitrary restrictions. When SPS measures are in place, it allows U.S. beef exports to compete on a level playing field in global markets. It is a good sign that an updated NAFTA agreement will maintain provisions that facilitate science-based trade.”
Also commenting on some of the progress, Dave Salmonsen, senior director of congressional relations at the American Farm Bureau Federation (AFBF), told WLJ, “The SPS chapter will have the NAFTA countries use the same methodologies on determining food safety standards and recognize the procedures of each country. It will work to eliminate the ‘behind the border barriers’ that can be as effective as tariffs in impeding trade.”
Although Gregg Doud has not yet been formally sworn in as the USTR’s chief agricultural negotiator, Bacus said NCBA is pleased that he will have a seat at the table in future NAFTA negotiations. “Mr. Doud understands the importance of protecting duty-free access to Canada and Mexico and will be a strong advocate for American farmers and ranchers as talks move forward.”
Likewise, Salmonsen said, “Chief Agricultural Negotiator Doud is a welcome addition and leader for the ag negotiating team at USTR.”
Salmonsen also noted, “The most contentious parts of NAFTA deal with rules of origin for auto and auto parts, dispute settlement procedures, government procurement and treatment of intellectual property. These will likely not be fully resolved until the end of the negotiations.”
Another round of negotiations will be held next month in Washington, D.C. — Rae Price, WLJ editor
