House Majority Whip Notes Congressional Concern Over Canada's NAFTA Negotiating Tactics
House Majority Whip Steve Scalise, R-La., noted a "growing frustration with many in Congress regarding Canada's negotiating tactics," in a Sept. 18 statement about the "continued delay to join Mexico and the United States in a new North American trade deal." Canada seems so far unwilling to make some necessary concessions, he said. "While we would all like to see Canada remain part of this three-country coalition, there is not an unlimited amount of time for it to be part of this new agreement," he said.
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Trade Promotion Authority legislation creates some timing restraints for consideration of an updated NAFTA in Congress, he said. "We will not short-circuit the open, transparent, and accountable process established under TPA to ensure that the full text is available to the public. Mexico negotiated in good faith and in a timely manner, and if Canada does not cooperate in the negotiations, Congress will have no choice but to consider options about how best to move forward and stand up for American workers.” Some expect Canada to make some concessions at the "11th hour" of negotiations (see 1809130034).
Meanwhile, the U.S. Chamber of Commerce, the Business Roundtable and the National Association of Manufacturers sent a joint letter to U.S. Trade Representative Robert Lighthizer pointing to necessary pieces of a new NAFTA. Both Mexico and Canada need to be included and an automatic sunset clause should be avoided, the groups said. While Mexico agreed to an "alternative" sunset provision (see 1808270032) that allows for regular reviews of the deal and the potential for termination, such a provision "would create significant uncertainty for investments," they said.
The North American countries should also be excluded from new tariffs, including future Section 232 tariffs on auto and auto parts imports, the trade groups said. "Given that the imposition of new auto tariffs on trade with Canada and Mexico would hurt American families and cause both job losses and higher costs for businesses, we urge any new NAFTA deal to exclude new and higher tariffs within North America."