Foreign Affairs Minister Chrystia Freeland makes an announcement and holds a media availability on Canada’s response to the Rohingya crisis at the National Press Theatre in Ottawa on Wednesday, May 23, 2018. Freeland is headed to Washington for a two-day visit beginning Tuesday as talks to modernize the North American Free Trade Agreement hang in the balance. THE CANADIAN PRESS/Sean Kilpatrick

Foreign affairs minister heads to Washington as NAFTA hangs in balance

Canada’s latest reprieve from potentially crippling U.S. tariffs on imports of steel and aluminum expires June 1

Pessimism is hovering as Foreign Affairs Minister Chrystia Freeland embarks on a two-day visit to Washington starting Tuesday, with talks to modernize the North American Free Trade Agreement hanging in the balance.

Freeland has been a fixture in the U.S. capital in recent weeks, taking part in high-level NAFTA negotiations with U.S. trade czar Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo.

Freeland’s office isn’t saying if those talks are the main purpose of her visit.

But Prime Minister Justin Trudeau has been talking by phone with U.S. President Donald Trump and Mexico’s Enrique Pena Nieto in recent days, despite dwindling hope of reaching a deal.

Time is of the essence: Canada’s latest reprieve from potentially crippling U.S. tariffs on imports of steel and aluminum expires June 1, and there are fears they could go into effect without a NAFTA deal in place.

The three countries have been working around the clock in hopes of getting a deal in time for the current iteration of the U.S. Congress, and ahead of what’s expected to be a consequential election in Mexico July 1.

Freeland’s office had no comment Monday. But NAFTA stakeholders and observers remain skeptical that she will be able to accomplish anything substantial.

Jerry Dias, president of Unifor, has been a constant presence at almost every NAFTA discussion. But the head of Canada’s largest autoworkers union won’t be in Washington this time, convinced there remains “no chance” of progress by week’s end.

The rules governing autos have been a persistent thorn, with the U.S. seeking to stem the loss of manufacturing jobs to Mexico, a view Canada broadly shares. The continental content of what defines a North American-made automobile and the relatively low wages of Mexican workers have been the main sticking points.

Dan Ujczo, an American trade lawyer with Dickinson Wright PLLC, described Freeland’s latest visit as a “Hail Mary pass” that she will have much difficulty completing.

The best she could accomplish would be a deal in principle on autos, which would lead to a continuation of the current steel and aluminum exemptions, with the three countries attempting to finish the job next year, Ujczo said.

Even if the three countries somehow reached a full agreement on NAFTA this week, a deal has no chance of ratified in the U.S. this year, he added.

Trudeau spoke with Trump on Friday about bringing the negotiations to a timely conclusion, and had a similar call with Pena Nieto a day earlier.

The prime minister also expressed his “strong concerns” regarding the U.S. threat to slap tariffs of up to 25 per cent on vehicle imports, given the integrated nature of the two countries’ auto industries, his office said.

Prior to the call, Trudeau said publicly he planned to tell Trump the move would have an “incredibly negative effect” on the American economy.

The U.S. move likely stems from the difficult efforts to rewrite NAFTA, the prime minister added.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Fred Eaglesmith and Tif Ginn head to the Elks Lodge Sept. 14th

Talented duo first in Central Music Festival’s new season

Gord Bamford Foundation Charity Gala brings the stars to Central Alberta

The Gala raises money for various children’s charities throughout Canada

The Dragonfly Children’s Healing Centre set to open next month

Expanded programming will broaden scope of The Outreach Centre’s work

Special air quality statement in effect for Central Alberta

Wildfire smoke from B.C. covering 95 per cent of the province

Blackfalds RCMP warn of attempts to steal property

This week two males attempted to steal a utility vehicle from a rural property

Updated: ‘Queen of Soul’ Aretha Franklin has died

Publicist Gwendolyn Quinn reports Franklin passed Thursday at 9:50 a.m. at her home in Detroit

RCMP appeal for tips, dashcam footage in German tourist shooting west of Calgary

The Durango crashed into the ditch after the shooting near the Goodstoney Rodeo Centre

Red Cross now accepting donations for those impacted by B.C. wildfires

The Canadian Red Cross is asking for help now and in the weeks and months ahead.

Breton RCMP seek motorist who may have witnessed crime

Breton RCMP requesting public assistance in identifying suspects of break and enter

Fredericton widow swears at Trudeau during condolence call

Widow of man killed in Fredericton shooting says she swore at Trudeau during condolence call.

Tim Hortons promises leaky lids on coffee cups to be phased out

Tim Hortons looks to rebuild its brand with better lid, new marketing campaign

‘There’s been a lot of devastation:’ man whose family lost homes in B.C. fire

The provincial government declared a state of emergency Wednesday as more than 550 wildfires burn in every corner of B.C.

Aheadbyacentury looking for Triple Crown breakthrough in the Breeders’ Stakes

The consistent Aheadbyacentury has $513,800 in career earnings, including $311,250 this year thanks in large part to his Triple Crown performances.

Police looking to identify serial groper in Edmonton

EPS seek assistance to identify suspect in brazen sexual assaults

Most Read