AFBF: NAFTA Pressure Now On Canada

Canada is now under strong U.S. pressure to deal on NAFTA, as U.S. farm leaders wait to see whether the Canadians will budge on a key protectionist dairy policy.  U.S. Trade Representative Robert Lighthizer plans to give Congress a required 90-days-notice the White House will submit a preliminary NAFTA deal with Mexico with hopes to broker one with Canada, later

But, Canadian Prime Minister Justin Trudeau was not budging early in the week on the supply management system that protects Canada’s dairy farmers from imports of U.S. dairy.   However, reports suggested the Canadians may budge.  President Trump is threatening Canada with stiff auto tariffs, a Mexico-only NAFTA, and maybe even, continued metals tariffs.

“I think a lot of this is meant to motivate the Canadians to come to a deal.  Cardinally the moves to get a deal with Mexico, this preliminary deal is part of that” said American Farm Bureau’s Dave Salmonsen.

Assuming U.S. lawmakers cut the White House some slack on notification of a partial deal, not yet including Canada.

“That supposing Canada doesn’t rush in at the end here, and basicly sign on to this deal in principle.  There’s no real clear answer to this.  It is a new issue for both the Administration and Congress to deal with,” Salmonsen said.

And while President Trump turns up the heat with the Canadians, his own party in Congress insists, Canada must be part of any final deal, otherwise technical and political issues might sink a Mexico-only agreement.