U.S. Plans to Schedule Opening NAFTA Talks in Roughly 90 Days

Matt Posky
by Matt Posky

U.S. Commerce Secretary Wilbur Ross want to begin formal talks to renegotiate the North American Free Trade Agreement with Canada and Mexico in a little over three months, adhering to the campaign pledges made by President Donald Trump last year. Ross explained to reporters that “sometime in the next couple of weeks” he will issue a notice to Congress stating the Trump administration intends to start formal NAFTA negotiations in just 90 days.

However, since he expressed his intentions in front of a gaggle of reporters, Congress is probably already aware. But it won’t be “official” until they get a piece of paper signed by the appropriate parties on the applicable letterhead — hopefully, embossed with a fierce-looking eagle surrounded by dollar signs.

“That’s what triggers the beginnings of the formal process itself,” Ross told Reuters at a news conference with Mexican Economy Minister Ildefonso Guajardo.

The 90-day period places talks in late June or early July. That wait is mandatory under the fast-track negotiating authority granted to the president by Congress. Fast-track only allows an up or down vote on trade deals, which is aimed to keep things efficient and bolster U.S. negotiation strength. The delay also allows time for Robert Lighthizer, the nominee for U.S. Trade Representative, to settle into his new role. It’s assumed Lighthizer will echo much of the current administration’s stance on NAFTA.

From WhiteHouse.gov:

With a lifetime of negotiating experience, the President understands how critical it is to put American workers and businesses first when it comes to trade. With tough and fair agreements, international trade can be used to grow our economy, return millions of jobs to America’s shores, and revitalize our nation’s suffering communities.

This strategy starts by withdrawing from the Trans-Pacific Partnership and making certain that any new trade deals are in the interests of American workers. President Trump is committed to renegotiating NAFTA. If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA.

In addition to rejecting and reworking failed trade deals, the United States will crack down on those nations that violate trade agreements and harm American workers in the process. The President will direct the Commerce Secretary to identify all trade violations and to use every tool at the federal government’s disposal to end these abuses.

Ross stated he was already consulting on the NAFTA talks with leaders of Congress’ trade panels, the Senate Finance Committee, and the House of Representatives’ Ways and Means Committee. He has also reached out to partner countries prior to formal negotiations. Mexico says is prepared to begin talks after May, while Canadian Prime Minister Justin Trudeau stated his country is also willing to renegotiate NAFTA but had to finish its own legislative processes prior to beginning negotiations.

[Image: Architect of the Capitol]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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6 of 46 comments
  • E30gator E30gator on May 19, 2017

    Yeah, right. Donald Trump will deliver on this campaign promise just like he has on all the others. LOL. Between dodging federal investigations, firing his staff, sending nasty tweets in the middle of the night, and playing golf at Mar a Lago, I'm surprised he has time for anything else. In fact, I'd be surprised if he even knew what NAFTA stands for.

  • Fred Fred on May 19, 2017

    Saw this on the news last night with the Mexican and American trade guys talking their bs. Wondered where Canada is in all this?

    • See 3 previous
    • Lou_BC Lou_BC on May 19, 2017

      @Fred - some politicians and pundits are pushing for putting countervailing duties on some USA products especially states who trade heavily with Canada and are pro-lumber tariff. Most experts have said to stay cool and ignore ego-in-chief's rhetoric. Canada has won every trade dispute with the USA over lumber. The USA wants our resources and as others have pointed out, China will take everything we ship them.

  • CanadaCraig VOTE NO VW!
  • Joe This is called a man in the middle attack and has been around for years. You can fall for this in a Starbucks as easily as when you’re charging your car. Nothing new here…
  • AZFelix Hilux technical, preferably with a swivel mount.
  • ToolGuy This is the kind of thing you get when you give people faster internet.
  • ToolGuy North America is already the greatest country on the planet, and I have learned to be careful about what I wish for in terms of making changes. I mean, if Greenland wants to buy JDM vehicles, isn't that for the Danes to decide?
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