The sixth of seven planned rounds of negotiations regarding the future of the North American Free Trade Agreement (NAFTA) is taking place this week in Montreal and Peace River-Westlock MP Arnold Viersen says the uncertainty surrounding the issue is hurting all parties.
The 24-year-old trade agreement between Canada, the U.S. and Mexico is facing opposition from U.S. president Donald Trump, who has called NAFTA a ‘terrible deal’ and while Chrystia Freeland, Canada’s Minister of Foreign Affairs, is optimistic that a new one can be reached, there is a chance the U.S. could withdraw.
According to officials, if the U.S. elects to do so, using a clause within NAFTA that sets in motion a six-month withdrawal notice, the decision will have to be made by March.
“It will be interesting to see how the government manages this situation,” Viersen said, noting Conservative party leader Andrew Scheer was in Washington last week to lend support to the negotiations.
Viersen said NAFTA is an important trade deal and opined that the current state of affairs is leading to uncertainty in both Canada and the U.S.
“We need to get the deal finalized and going forward so that we all know which direction we are heading in. Prime Minister Trudeau has managed this terribly. He doesn’t seem focused on the negotiations and in my opinion, it seems like he is actually sabotaging the negotiations to a certain degree, with respect to his voting actions at the U.N. and his woo-ing of China.”
From his perspective, Viersen said he believed Canada needs ‘to play ball’ with its neighbour.
“No one really knows how everything will look once the agreement is terminated. No one knows whether the border will be closed for a few days and then it will be free trade or if every product will be taken on its own merit. Either way, it will be a mess. If he [Trump] tears up NAFTA, we may be looking at a Canada-U.S. trade deal, but at this point, it is unclear what will happen,” Viersen said, adding there is a lot of integration between Canada and the U.S. and it is a fact that everyone needs to remember.
“Two billion [dollars] per day is transacted through cross-border trade. Nine million American jobs depend on it. We have to remind them [U.S.] of that fact and show them that Canada is a net asset. We have similar environmental standards and labour laws so, in my opinion, there really is no need to shut down the agreement.”
With respect to U.S. House Speaker Paul Ryan’s comments Jan. 12 that the biggest issue with NAFTA negotiations is Canadian dairy, Viersen said Ryan is mistaken.
“Canadian dairy is exempt from the negotiations. We have border controls not because we are flooding their market, but because we are afraid they will flood ours. Canadian milk is the best in the world and we have some of the best standards.”
