UPDATE: Core NAFTA objectives include new ‘progressive’ chapters
Canada wants stronger labour standards, tougher environmental protection provisions.
OTTAWA — Foreign Affairs Minister Chrystia Freeland is laying out Canada’s core objectives for the upcoming renegotiation of the North American Free Trade Agreement.
In a speech at the University of Ottawa, Freeland shared a half-dozen NAFTA goals – including opening up access to government procurement rights, more professional movement, defending Canadian rights to supply management and reform of the investor-state dispute settlement process.
“In all these discussions, we will come to the table with goodwill, and Canada’s characteristic ability and willingness to seek compromise and find win-win solutions,” she said.
“But we are committed to a good deal, not just any deal.”
She is also calling for new “progressive” elements in NAFTA 2.0: stronger labour standards, tougher environmental protection provisions as well as chapters on gender and Indigenous rights.
On that front, Canadian negotiators plan to use Canada’s recently negotiated trade agreement with the European Union as a reference, Freeland said.
“Progressive elements are also important if you want a free-trade deal that’s also a fair-trade deal,” Freeland said in a question-and-answer session following the speech.
Prime Minister Justin Trudeau and US President Donald Trump set up an initiative to support women entrepreneurs earlier this year, which Freeland says shows the White House is willing to play ball on this issue.
She also points out that Canada has done this before, when the Liberal government added a chapter on gender to its free trade deal with Chile.
That pact had both countries agree that working to include women and girls is key to long-term economic development.
Freeland says including gender, Indigenous peoples, the environment and labour standards in the new NAFTA is part of a “progressive” agenda that ensures a free trade deal is also a fair one.
Angella MacEwen of the Canadian Labour Congress says she believes the Liberal government is serious about pushing this issue as part of its commitment to a feminist foreign policy, but it remains to be seen whether the Trump administration will be willing to give it any teeth.
Ottawa also aims to cut down on bureaucracy, harmonize regulations to ease the flow of cross-border business, push for more mobility for professionals and free up the market for government procurement, she told her audience.
Canada’s positions will also include work to maintain key elements of the 23-year-old deal, including the process to ensure anti-dumping and countervailing duties are only applied when truly warranted.
Ottawa’s negotiating team will sit down with their American and Mexican counterparts Aug. 16 in Washington for the first round of talks.
Last month, US Trade Representative Robert Lighthizer released the Trump administration’s set of priorities for the NAFTA talks.
During the question and answer session, Freeland said she believes Canada and its NAFTA partners can find common ground on new chapters for labour, the environment, gender and Indigenous rights.
But she also warned that Canadians should brace for some tense exchanges during the NAFTA talks, in general.
“I think we all do need to be prepared for some moments of drama,” she said. “We should just see that as an expected part of any trade negotiations.”
Here’s Freeland’s list:
Freeland’s list, which is much shorter than the U.S. wish list of more than 100 items, includes:
• A new chapter on labour standards. The original NAFTA included a labour section as an addendum, inserted into the agreement after Bill Clinton was elected and insisted on a few changes. Some officials in Canada and the U.S. have identified a goal of tougher labour rules: Increasing Mexican wages, to make auto plants in the other countries more affordable.
• A new chapter on environmental standards. This was also added as an afterthought to the original NAFTA, placed there after Clinton’s election. Freeland says she wants a chapter that ensures no country can weaken environmental protection to attract investment. She also says it should support efforts against climate change.
• A new chapter on gender rights.
• A new chapter on Indigenous rights.
• Reforms to the investor-state dispute settlement process. Specifically, Freeland referred to Chapter 11 – which involves companies suing governments. She said she wants reforms so that “governments have an unassailable right to regulate in the public interest.” This is not to be confused with Chapter 19, which regulates disputes between companies over dumping, in cases like softwood lumber, and which the U.S. administration might seek to eliminate.
• Expand procurement. For years, Canada has wanted to kill Buy American rules for construction projects at the state and local level. It could be a tough sell. US lawmakers are demanding even more Buy American rules, which is something President Donald Trump campaigned on. Freeland said: “Local-content provisions for major government contracts are political junk food: superficially appetizing, but unhealthy in the long run.”
• Freer movement of professionals. NAFTA includes a list of professions where people can easily get a visa to work across the border. It’s an old list _ it mentions land surveyors and range conservationists, but not computer programmers. International companies want this list expanded to make it easier for employees to move between offices.
• Protect Canada’s supply-management system for dairy and poultry. Canada does not have free trade in these areas, and regulates imports and prices.
• Protect cultural exemptions. Canada insisted on protections in the old agreement for cultural industries, like publishing and broadcasting. The U.S.’s annual report on international trade barriers lists this as an irritant.
• Maintaining a process to regulate anti-dumping and countervailing disputes, like the one over softwood lumber. Freeland noted that Canada briefly walked out of the original talks in 1987, as this was a deal-breaker. The US says it now wants to get rid of the resulting Chapter 19. Some observers say it might simply be modified.News from © Canadian Press Enterprises Inc. 2016