Loosen protections on dairy sector, New York Republican says — NAFTA talks

Gold catches late NY bid on NAFTA headlines, but . . .

US, Canada still have work to do on NAFTA | TheHill

The talks are focused on USA demands to scrap the so-called Chapter-19 dispute resolution mechanism in NAFTA, overturn some of Canada's current "carve-out" of cultural industries from free-trade rules and loosen protections under the dairy sector's supply management system. Freeland said on Friday she and Lighthizer were making "very good progress" in talks to save NAFTA amid increasing Canadian optimism that a deal can be reached.

The Teamsters Canada believes that the best compromise is to conclude a new free trade agreement with the United States would be dropping the chapter 19 of the NAFTA.

Major stumbling blocks for Ottawa and Washington remain: an worldwide system for resolving disputes, Canada's protected dairy industry and Canadian cultural subsidies.

"It seems even if we give a lot, the USA keeps asking for more", said Mr. Kronby, an global trade lawyer with Borden Ladner Gervais.

"There's an opportunity to update NAFTA and we're happy to do it, but as I've said it has to be the right deal, it has to be a good deal", he said.

"We have been very clear on that, that there can not be more access given", Wiens said in a telephone interview. Perdue says: "Class 7 has got to go".

Former federal Canadian trade official Matthew Kronby said the reported American demands indicate to him that the White House doesn't really want to strike a deal with Canada. "That I know for sure, right from the horse's mouth".

"That has been the right decision", Freeland said late Tuesday of the mutual agreement to avoid publicly disclosing details of the talks. "But we don't negotiate differently because of pressure tactics like that".

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What should Canada do at the NAFTA negotiating table?

Canada's protected dairy industry is one of three sticking points in NAFTA talks between the two countries, along with a system for settling trade disputes and cultural protections for Canadian media firms.

A late day comment from Pres. Trump boosted the precious metal and the Canadian dollar where he said "Trade talks going well".

"We agreed that it would be useful to continue talking today, so we're back for more negotiations", Freeland told reporters as she entered USTR offices in Washington. In April 2017, Trump almost withdrew from NAFTA after becoming angered by the plight of Wisconsin dairy farmers whose milk protein exports to Canada had been cut off by the Class 7 pricing scheme.

Ottawa and Washington are trying to reach an agreement that could be submitted to the U.S. Congress by month's end.

The father of the North American Free Trade Agreement says the Canadian government will likely need to show some "flexibility" on dairy if a new deal is to be secured.

So far, Canada has been unable to obtain a guarantee from the United States that Canadians would not be hit with punitive USA auto tariffs if Ottawa agrees to a new NAFTA deal with Washington.

US President Donald Trump also said the talks, which both countries intensified in recent weeks, were coming along well.

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