Canada needs Chapter 19 because Trump 'doesn't always follow the rules': Trudeau
08 September, 2018, 02:09 | Author: Sheri Evans
Freeland is to meet with American trade czar Robert Lighthizer later this morning at his office near the White House.
Canada's cultural exemption was absent from the Trump administration's list of negotiating objectives released before the start of the talks.
"Many in China must be viewing the most recent NAFTA developments, and in particular the sharp words the president is using against Canada, as another gift from the Trump administration", said Wendy Cutler, who helped lead trade negotiations with China during the Obama administration and is now at the Asia Society.
Lighthizer must submit the text of a deal to Congress by month's end.
On Tuesday, Prime Minister Trudeau said Canada will not sign onto a deal that does not include a dispute resolution mechanism and exemptions for cultural industries.
"I think that it's not necessarily a disaster", she said. "No Nafta is better than a bad Nafta deal for Canadians".
Trump is embarking on a high-stakes gamble, cutting a deal with Mexico first, in hopes of forcing Canada to acquiesce.
"Anything other than a trilateral agreement won't win congressional approval and would lose business support", Donohue said in a statement after talks failed last week. Trump is threatening to move ahead on a deal with Mexico that excludes Canada.
Amid rising optimism last week that an agreement would soon be finalized on a rewrite of the 25-year-old trade deal, inflammatory comments from Trump angered officials in Ottawa and the discussions ended Friday with no agreement.
Without, the U.S. -Mexico deal faces a steeper climb and big pitfalls in Congress. As a result, many regional experts and political economists are cautioning that the political gains fostered by the pact could be damaged in the fray of an us-versus-them renegotiation battle that disregards the spirit of community underlying NAFTA's success. US crude prices settled 1.4 per cent lower at $67.77 a barrel. -Mexican deal that it is being asked to join, according to people briefed on the matter who asked for anonymity because they were not authorized to speak publicly.
But Canada also will raise concerns about intellectual property rights, language governing financial services and the value of goods shipped via e-commerce sellers that can cross the border duty-free, they said. During those negotiations, the Canadian government walked away from the negotiating table over a disagreement with the United States about Chapter 19 for the FTA.
Trump called NAFTA a "stupid deal" for the USA causing millions of American jobs to leave the country.
In an interview with CNBC's Squawk Alley, Kim Campbell said Canada's preference would be to have dispute resolution, notably Chapter 19, adding that there could be some flexibility from Canada on the issue. It also wants to continue protections for its dairy industry and defend lumber exports to the United States, which have been hit with duties.
"A stronger USA dollar which is bad for emerging markets, not good for trade, commodities are all weaker and as a result Canadian equity markets are in the red for the most part".
"The deal is a much more fair deal between the United States and Mexico", Trump said.
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