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

Strong winds forecasted in Prince Rupert and Haida Gwaii

Winds to reach between 100-120 km/h in Haida Gwaii and 70-90 km/h in Prince Rupert

Boat sinks while moored at Rushbrook floats

Port Edward Harbour Authority will lift the boat before destroying it

PRMSA wins association of the year honours

The Prince Rupert Minor Softball Association was honoured in Kamploops on Oct. 20

Web Poll: Are you pleased with the 2018 election results?

Prince Rupert elected two new councillors and four incumbents, and Port Edward has a new mayor

Incumbents and acclaimed mayors win elections all across B.C.’s north

Fraser Lake saw their first female mayor elected

VIDEO: Horde of zombies meet at courthouse

Treena Decker organized the 2018 zombie walk through Prince Rupert on Oct. 20

Delivering the paper as a family

The Northern View is looking for newspaper carriers in Prince Rupert, join our team today

WWE star Roman Reigns announces he has leukemia

Grappler formerly played in CFL

China opens mega-bridge linking Hong Kong to mainland

The $20 billion bridge took almost a decade to build while incurring major delays and cost overruns

Dangerous Cat 4 Hurricane Willa closing in on Mexico coast

Officials said 7,000 to 8,000 people were being evacuated from low-lying areas, mostly in Sinaloa state

Excessive speed named as cause of Taiwan train derailment

18 people were killed and at least 170 more were injured

Ovechkin has 4 points as Caps rough up Canucks 5-2

WATCH: Defending champs pick up impressive win in Vancouver

B.C. government moves to tighten resource industry regulations

New superintendent will oversee engineers, biologists, foresters

Most Read