Canadian officials say prospects of agreement on a new NAFTA by the end of the year are fading in the face of unacceptable U.S. demands, reports Canadian Press, with some analysts questioning if the true U.S. goal is a breakdown in negotiations. The chief U.S. negotiator told Bloomberg, “We made a request of Canada for improved access for dairy, poultry and eggs” over the weekend, the first time agricultural trade was discussed at the talks.
Canada has rejected the idea of changing its supply management system, a position that Agriculture Minister Lawrence MacAulay reiterated on Monday. “To deal with anything else is simply a non-starter,” MacAulay told reporters. “We need a ‘right’ deal and we’re not going to sign any deal.” Dairy was left out of the 1994 NAFTA accord. President Trump complained twice last spring that Canada was setting dairy prices to minimize imports of U.S. ultra-filtered milk, used in making cheese.
The fourth round of NAFTA negotiation is to conclude today, with three more sessions on the agenda. Senior officials of the NAFTA nations are to hold a news conference to mark the end of the fourth round. Canada and Mexico account for one-third of U.S. agricultural trade.
“Mexico is steeling itself for the increasing possibility that the United States will pull out” of NAFTA, said the New York Times. The southern neighbor of the United States has accelerated trade talks with other nations, including China, and is expecting its first-ever shipment of wheat from Argentina. Apples from Chile are on sale in Mexican supermarkets, next to Washington State apples, said the Times.
“Several Canadians said it’s unclear” if the U.S. team was trying torpedo negotiations, or taking the approach of extreme opening demands that will make deal-making easier in the end. “But one thing is increasingly clear, they say: Hopes are fading for a quick deal by Christmas,” said Canadian Press.