The U.S. is stressing its support for renegotiating a three-country NAFTA agreement after comments from an American lawmaker suggesting it was considering splitting Canada and Mexico into separate talks.
This story by the Canadian Press appeared in Automotive News Canada.
U.S. trade czar Robert Lighthizer held a rare briefing on the state of NAFTA with American lawmakers, updating one of the two U.S. congressional committees overseeing trade.
One of the congressmen left that meeting saying it appeared the American side, frustrated by the pace of talks with Canada, was considering concluding a quick agreement with Mexico – and sorting out a deal with Canada later.
One of biggest wedges between Canada and the U.S. is the U.S. demand to increase the threshold governing rules of origin in automobiles and parts to 85 percent from 62.5 percent, with a 50 percent carve-out for U.S. parts and material. Canada has rejected that idea.
Some Democrats called it strange to say things were going more smoothly with Mexico – when the most fundamental issues involve Mexico and have yet to be settled, including labor rights, outsourced jobs and auto rules of origin.
Sander Levin said the U.S. administration might be annoyed at some of Canada’s recent trade moves, but he doesn’t see how the dynamics of the negotiation have changed much since the U.S. supposedly entered these talks to bring back manufacturing jobs from Mexico.
Many U.S. lawmakers are critical of their own government.
There is little appetite on Capitol Hill for ending NAFTA – and many lawmakers view their own administration’s behavior as jeopardizing the agreement. The Democrats are more vocal about it.
