Despite Trump talk of 'tweaking' NAFTA, Canada could still be hurt

Tue Feb 14, 2017 2:50pm EST
 
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By David Ljunggren and Andrea Hopkins

OTTAWA (Reuters) - Although U.S. President Donald Trump says he only wants to tweak trade ties with Canada, his pledge to renegotiate NAFTA to focus on Mexico is almost impossible and Canada will not emerge unscathed, Canadian officials and trade experts said on Tuesday.

Trump had warm words for Canadian trade following a meeting with Prime Minister Justin Trudeau on Monday, but his call for major changes to the North American Free Trade Agreement to target Mexico stymied experts.

"I can't see how it's possible at all. It would be very complicated to do and I don't think Mexico would ... ever go along with it," said Mark Warner, a trade lawyer and principal at MAAW Law in Toronto.

Canada and Mexico send the bulk of their exports to the United States under NAFTA.

One senior Canadian government official, asked how the agreement could be tweaked for one partner and changed in a major way for another, admitted frankly, "I don't know."

Trump spoke after his first meeting with Trudeau, who is trying to sell the merits of NAFTA while opposing a border tariff, an idea circulating in U.S. political circles that could badly hit Canadian industries.

Warner said that if the U.S. government decided to impose the tariff, "the consequences of that could be described as a tweak but the significance of it would be major."

Matthew Kronby, an international trade lawyer at Bennett Jones in Toronto, said "it is very hard to tease apart the elements of the deal that I suppose Trump might think are a disaster with Mexico while leaving it intact with Canada."   Continued...

 
U.S. President Donald Trump (R)  listens to Canadian Prime Minister Justin Trudeau during a joint news conference at the White House in Washington, U.S., February 13, 2017.    REUTERS/Carlos Barria