US-Canada Talks Restart After Congressional Notification on FTA With Mexico
Canadian Prime Minister Justin Trudeau told reporters in Canada on Sept. 4 that Canada will not sign a free trade deal that would allow American firms to buy Canadian newspapers or TV stations, and that NAFTA Chapter 19's dispute mechanism also is a must. "We will not sign a deal that is bad for Canadians and, quite frankly, not having a Chapter 19 to ensure that the rules are followed would be bad for Canadians," he said.
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On Sept. 5, the first day back in negotiations after President Donald Trump informed Congress that the administration plans to reach a trade agreement with Mexico and potentially with Canada (see 1808310053), Canada's Foreign Minister Chrystia Freeland sounded somewhat upbeat while talking to reporters. "The atmosphere today has continued to be constructive and cordial," she said. "There's good will on all sides." Although Freeland continues to resist talking about sticking points such as Chapter 19, she did note that the negotiators will stand up for the "national identity," which could be referring to the cultural exemptions for Canadian radio, TV, newspaper and film sectors.
Some in Congress say it is critical to retain Canada in the agreement. Sen. Tim Kaine, D-Va., did in the Senate hearing on auto tariffs on Sept. 5, while others emphasized the need for Canada to compromise to join NAFTA 2.0. House Ways and Means Committee Chairman Kevin Brady, R-Texas, said, "I still think the best thing for North America is a seamless three-country trade agreement. However, the ball right now really is in Canada's court. I'm encouraging them to step up, the clock is ticking. There's some serious issues that have frankly plagued our trading relationship for far too long. Now is really the time to come to the table, all the parties, to resolve those issues."
Trump continues to say that Canada has taken advantage of the U.S., including at the White House on Sept. 5. "I'm not blaming Canada, I love Canada, I love the people of Canada, but they and other countries have been taking advantage of the United States for many years," he said.
Brady, who was speaking to reporters Sept. 4, said he recognizes some of these issues have been a sore subject for a long time. "I'm not saying it's going to be easy, but I'm confident the U.S. and Canada can find common ground."