Canada takes first step towards ratifying new Nafta
- Move comes ahead of visit by US Vice-President Mike Pence, who will meet Trudeau on Thursday to discuss free trade agreement
- Trump lifted tariffs on steel and aluminium last week, removing major obstacle to USMCA deal in US, Canada and Mexico
Canada took the first step toward ratifying a new North American trade agreement on Monday just three days ahead of US Vice-President Mike Pence’s trip to Ottawa to discuss passage of the treaty.
Foreign Minister Chrystia Freeland presented what is known as a “ways and means motion” to the House of Commons, which opens the way for the formal presentation of a bill.
The deal known as the USMCA, which would replace the 25-year-old North American Free Trade Agreement, has yet to be approved by legislatures of the three participating countries – Canada, Mexico and the United States.
The US struck deals on May 17 to lift tariffs on steel and aluminium imports from Canada and Mexico, removing a major obstacle to legislative approval.
Pence is expected to meet Canadian Prime Minister Justin Trudeau in Ottawa on Thursday.
“The entry into force of this agreement does not depend solely on Canada,” Freeland told reporters after presenting the motion. “Insofar as possible, we intend to move in tandem with the United States.”
The US is Canada’s top trading partner, taking in 75 per cent of its goods exports. Reaching a new trade deal had been a priority for Trudeau’s Liberal government, and a national election is five months away.
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Freeland said she had spoken over the weekend with US Trade Representative Robert Lighthizer and less than two weeks ago with Mexico’s government about their ratification process.
The administration of US President Donald Trump, a Republican, negotiated the deal but some US Democratic lawmakers demand stronger enforcement provisions for USMCA’s new labour and environmental standards.
John Manley, a former Canadian Liberal foreign minister, said on Friday that Canada should pass the new treaty this summer.
“To fail to pass it is going to be a signal to the US Congress that it is still open for renegotiations,” Manley said.
Some US lawmakers have said passing the treaty would become more difficult after the congressional summer recess due to budget battles and increased campaigning ahead of the November 2020 presidential election.
