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Despite Trump deadline, NAFTA talks to resume next week

Any deal with Canada would be 鈥渢otally on our terms,鈥 said US president
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President Donald Trump listens during a discussion for drug-free communities support programs, in the Roosevelt Room of the White House, Wednesday, Aug. 29, 2018, in Washington. (AP Photo/Alex Brandon)

Foreign Affairs Minister Chrystia Freeland gave a cold shoulder to U.S. President Donald Trump and cozied up instead to her American trade counterpart Friday as Canada鈥檚 effort to re-enter the North American free-trade fold fell short of meeting its end-of-week deadline.

With a pledge to resume talks next week, Freeland spoke of progress, of optimism and of her determination to get a deal that鈥檚 good for Canadians 鈥 a remarkable show of restraint on a day that began with another blast of now-familiar Trump bombast that landed like an anvil on the negotiating table.

Any deal with Canada would be 鈥渢otally on our terms,鈥 the Toronto Star quoted Trump as saying in an off-the-record aside during an interview with Bloomberg 亚洲天堂.

鈥淚f I say no 鈥 the answer鈥檚 no. If I say no, then you鈥檙e going to put that, and it鈥檚 going to be so insulting they鈥檙e not going to be able to make a deal,鈥 he reportedly said, adding: 鈥淚 can鈥檛 kill these people.鈥

Freeland studiously avoided talking about the remarks all day, never once mentioning the president by name during her multiple media appearances, including a long-awaited news conference at the Canadian embassy.

Indeed, whenever Trump鈥檚 name came up, she showered her opposite number 鈥 U.S. Trade Representative Robert Lighthizer 鈥 with praise, suggesting the two of them are engaged in a joint effort to overcome their mutual impasse, regardless of what the White House might think.

鈥淢y negotiating counterparty is Ambassador Lighthizer and, as I鈥檝e said, he has brought good faith and goodwill to the table,鈥 she said when asked directly about Trump鈥檚 comments.

鈥淚 have now been working with Ambassador Lighthizer and his team for more than a year. We have had some very intense periods of working together and Ambassador Lighthizer and his team are very experienced professionals. And they absolutely do bring good faith and goodwill to the negotiating table.鈥

Pressed once more to talk Trump, she said curtly: 鈥淚鈥檒l take the next question.鈥

Trump confirmed the authenticity of the Bloomberg 亚洲天堂 remarks in an afternoon tweet.

鈥淲ow, I made OFF THE RECORD COMMENTS to Bloomberg concerning Canada, and this powerful understanding was BLATANTLY VIOLATED,鈥 Trump wrote 鈥 ignoring the fact that the remarks were reported via an anonymous source by the Star, unencumbered by any such restrictions.

鈥淥h well, just more dishonest reporting. I am used to it. At least Canada knows where I stand!鈥

Just prior to Freeland鈥檚 news conference, the USTR confirmed Trump had notified Congress that he intends to sign a trade agreement in 90 days with Mexico 鈥 and Canada, if Ottawa decides to join in. The talks are scheduled to resume Wednesday in Washington.

Trump, according to the Star report, said he frequently reminds Canada that if necessary he will slap painful tariffs on auto imports. Such a move, experts warn, would inflict heavy damage on the countries鈥 deeply integrated auto sector.

鈥淥ff the record, Canada鈥檚 working their ass off. And every time we have a problem with a point, I just put up a picture of a Chevrolet Impala,鈥 he said. The Impala is built at the General Motors plant in Oshawa, Ont.

Prime Minister Justin Trudeau, speaking at an event Friday in Oshawa, brushed off a question about Trump鈥檚 comments, saying that 鈥漮ver the past year and a half there鈥檚 a lot of things that have been said from time to time.鈥

This week鈥檚 new round of U.S.-Canada negotiations had initially generated hopeful signals from both camps that a deal could be struck by the end of the week 鈥 but difficult discussions about dairy and dispute settlement persisted.

Trump has repeatedly criticized Canada鈥檚 dairy industry and has used the threat of tariffs on Canada鈥檚 auto production to push for concessions. But Canada鈥檚 dairy industry 鈥 backed by Quebec politicians of all stripes 鈥 is adamant that it won鈥檛 stand for the government allowing the U.S. any more market access, saying it has compromised enough on past trade deals with the European Union and Pacific Rim countries.

Another lingering sticking point is Chapter 19, set up to resolve disputes among the three countries and industry around how to implement NAFTA rules. The U.S. wants it out of the deal, but Canada says it must be included.

The Canadian Press

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