Nafta talks are picking up again but a deal is unlikely to be reached this week, four people familiar with discussions said -- increasing the odds the latest deadline will be missed amid Donald Trump’s threat to freeze Canada out.
Canadian Foreign Minister Chrystia Freeland, after her first in-person meeting in more than a week with U.S. Trade Representative Robert Lighthizer in Washington on Wednesday, said talks are still productive. Negotiators need to do more work, Freeland told reporters, adding she’ll meet Lighthizer again in the afternoon.
The two countries remain at odds on core issues, including dairy and dispute panels. A deal is unlikely this week without major movement, the people said, speaking on condition of anonymity as negotiations continue. The talks could extend into next week, and several deadlines have been missed so far. A Canadian official had said Thursday was the likely deadline to reach a deal in order to convert it to legal text by the end of the month.
The countries had been pressuring each other on the eve of the meeting. Representative Steve Scalise of Louisiana, a key Republican lawmaker, warned in a statement Tuesday that congressional patience with Canada was wearing thin. Prime Minister Justin Trudeau, at the same time, continues to say he would rather see no deal than be forced to accept a bad one.
“We’ve been very clear that we’re interested in what could be a good deal for Canada, but we’re going to need to see a certain amount of movement in order to get there and that’s certainly what we’re hoping for,” Trudeau told reporters Wednesday in Ottawa.
The U.S. reached a preliminary deal with Mexico in August. Barring an accord with Canada, Trump has threatened to proceed with only his southern neighbor, though Scalise stopped short of saying Congress would go along with that.
“It is growing increasingly unlikely that you can get text to the Congress by Sept. 30,” said Jennifer Hillman, a professor of law at Georgetown University and former general counsel to the Office of the U.S. Trade Representative. It’s even more unlikely to proceed quickly with only Mexico, she said. “Canada does still have some leverage.”
Scalise, the House majority whip, said if Canada does not “cooperate” then Congress would “consider options about how best to move forward,” though he didn’t specify how.
“There is a growing frustration with many in Congress regarding Canada’s negotiating tactics,” Scalise said in the statement.
‘All Three Countries’