Talks between Canadian and U.S. trade negotiators turned sour last night and Trudeau government officials are now expressing concern that a final NAFTA deal will not be concluded on Friday, the deadline set by U.S. President Donald Trump.
Despite repeated efforts by Foreign Affairs Minister Chrystia Freeland to offer concessions to maintain an independent trade dispute mechanism in a revamped trade deal, U.S. Trade Relations Representative Robert Lighthizer has refused to budge, according to a source familiar with the situation.
The source said Mr. Lighthizer and the U.S. are holding fast on eliminating Chapter 19 - which allows Ottawa to challenge punitive American tariffs on imports before binational panels - and refusing to keep current cultural protection provisions in a redrafted North America free-trade agreement.
Ms. Freeland, who said on Thursday a deal is possible, had offered the Americans concessions on increased U.S. dairy exports to Canada and on intellectual property, but Mr. Lighthizer was unwilling to offer any concessions of his own on the two key Canadian demands.
There is now deep concern within the Canadian negotiating team that the talks which continue this morning will end in failure.
The Trump administration on Friday morning denied that Canada had conceded anything on the dairy market...
The unusual move comes after both sides had agreed this week not to discuss specific negotiating positions in public, and could signal a more combative stage of negotiations...
Officials also cautioned that Mr. Trump has not yet signed off on any of the measures agreed upon so far and he could reject any trade-dispute mechanism if the U.S. suddenly changes its hardline stance...
This was excerpted from 31 August 2018 edition of The Globe and Mail.