Labor and Industry Agree: Keep Canada in NAFTA

U.S. business groups sought last week to increase pressure on the Trump administration to retain the existing structure of the North American Free Trade Agreement, urging U.S. officials to keep Canada in the deal.

“It would be unacceptable to sideline Canada, our largest export market in the world,” wrote the heads of the National Association of Manufacturers, the U.S. Chamber of Commerce, and the Business Roundtable in a letter to U.S. Trade Representative Robert Lighthizer.

The letter comes as U.S. and Mexican officials are seeking to put pressure on Canada to make concessions soon and join in a three-way agreement—or be left out of a new two-nation pact.

The Trump administration notified Congress last month that it had struck a deal with Mexico and would formally sign a new version of NAFTA as early as late November. Canada would be part of the agreement “if it is willing, in a timely manner,” Trump said.

Traditionally, Republican lawmakers have taken into account the views of business groups on trade issues, while many Democrats have often taken a cue from labor groups. In recent weeks, U.S. labor groups and business groups have aligned in expressing a preference for including Canada.

Mexican officials are eager to sign a new version of NAFTA soon. By law, the agreement must be published for 60 days before it is signed, and Mexico’s president-elect, Andrés Manuel López Obrador, takes office in December. Officials worry the new president could seek changes.

Canadian Foreign Minister Chrystia Freeland returned to Canada late last week after U.S.-Canada trade talks once again failed to deliver a breakthrough. Talks continue informally this week.

“It is my job to stand up for the national interest,” Freeland said after a meeting with Lighthizer. “That’s what we’ve done from day one and that’s what we are going to continue to do.”

Sources: Politico, Wall Street Journal