X
HELP US MAKE SENSE OF OUR COMPLEX WORLD
The Canadian Global Affairs Institute provides credible, open access expertise on global affairs. With your support, we can continue to spark impassioned nation-wide discussions designed to help Canadians better understand their role in the international arena.
S U P P O R T   U S
SUPPORT US

Trump wants to overhaul NAFTA? Bring it on

by Colin Robertson

The Globe and Mail
December 7, 2016

President-elect Trump wants to “renegotiate” NAFTA. Bring it on.

The gains we made from NAFTA (1993), spectacular during its first decade, have mostly plateaued. The Trans Pacific Partnership agreement would have updated our continental accord but now that Mr. Trump has shelved it, re-opening NAFTA makes sense.

For Canada, a North American economic pact is vital. The U.S., our biggest trading partner since the Second World War, currently accounts for about 75 per cent of our trade. Our trade with Mexico has grown sixfold since NAFTA.

For Canada, our main objective in re-opening NAFTA should be the freer movement of people, goods and investment within North America. Last year more than $700-billion in goods flowed across our southern frontier and more than 150 million people crossed our shared border by land, air and water.

As with any negotiation, to get we have to be prepared to give. Let’s be bold. Let’s put our costly dairy supply-management, a perennial U.S. target, on the table in return for better procurement access, including shipbuilding.

Last week’s Auditor General’s report on the Beyond-the-Border Action Plan – the latest in a series of initiatives aimed at improving border access – identified shortcomings that should be Canadian priorities with U.S. negotiators. The Entry/Exit and trusted traveller programs, including customs self-assessment and the Single Window initiative, are all behind schedule. Some of this is our responsibility but we also need to see more openness to change from the U.S.

Despite recent efforts at regulatory reform, our supply chains still suffer from the “tyranny of small differences.” Regulatory reform could benefit from a Trump re-boot.

The provinces, who were not in the room for the NAFTA negotiation, should be full partners in the coming sessions because many of the necessary improvements fall under their jurisdiction. The premiers should reach out to their governor counterparts with specific proposals around reciprocity for procurement, especially given Mr. Trump’s promised “Big Build” program.

The North American advantage is our people and a new trade accord should include:

  • Bringing the list of professions eligible for fast-track cross-border access into the digital age. The skilled trades workers who are enabling North American energy independence also need to move back and forth with ease.
  • Speeding up the re-qualification system for professionals needed on the job now.

Mr. Trump wants a better deal for American workers.

Main Street America never appreciated the value of NAFTA in part because U.S. leaders did a lousy job in explaining – and sharing – the value of continental trade while failing to adequately help those left behind through global competition and technological changes.

We did it better in Canada but an overhaul of the NAFTA accord on Labour Cooperation is in the interests of all three countries. Why not make a joint commitment to adjustment assistance and retraining as a basic right for workers?

Mr. Trump’s promise to build a wall and to increase deportations to Mexico has led some to wonder whether we’d be better to go it alone with the U.S. leaving Mexico to fend for itself. Divide and conquer is integral to Mr. Trump’s Art of the Deal. Working with Mexico will avoid that trap.

Mexico is now our third largest trading partner. We have major investments in Mexico and, with a middle class of 44 million people, Mexico is a market that will only increase. By 2050, Mexico is expected to rank fifth in global economic weight.

Mr. Trump wants another look at country-of-origin-labelling (COOL), a protectionist measure that curtailed our meat exports. Working closely with Mexico, our joint efforts resulted in Congress repealing COOL last December.

On COOL and those many issues where Canada and Mexico share common cause – including trade, climate and energy – we need to continue working together. On the border and security, we will diverge at times, reflecting our own interests but we should work in tandem. Our shared and overriding principle with Mexico should be no surprises and constant communication at all levels.

Re-opening a deal that is past its best-before date is an opportunity that all three nations should embrace. It’s time to bring NAFTA into the digital age.

A former diplomat, Colin Robertson is vice-president and fellow at the Canadian Global Affairs Institute.


Be the first to comment

Please check your e-mail for a link to activate your account.
SUBSCRIBE TO OUR NEWSLETTERS
 
SEARCH
EXPERTS IN THE MEDIA

Biden’s push for EV revolution is a ‘win’ for Canada: Policy Analyst

by BNN Bloomberg (feat. Eric Miller), BNN Bloomberg, January 20, 2021

New US Arctic strategies ignore climate risks in focus on geopolitics, experts say

by Melody Schreiber (feat. Tim Choi), Arctic Today, January 20, 2021

From Alberta’s oilsands to tariffs, how Biden’s presidency could change Canada

by Graham Slaughter, Ryan Flanagan, and Rachel Aiello (feat. Sarah Goldfeder, Stephen Saideman, and Laurie Trautman), CTV News, January 20, 2021

Challenges ahead despite major shift in Canada-U.S. relations under President Biden: expert

by Cormac Mac Sweeney and Kathryn Tindale (feat. Colin Robertson), News 1130, January 20, 2021

How Biden’s Made-in-America plan could impact Canadian companies

by Brett Bundale (feat. Colin Robertson), BNN Bloomberg, January 20, 2021

Biden’s plan to cancel Keystone pipeline signals a rocky start with Canada

by Amanda Coletta (feat. Eric Miller), Washington Post, January 19, 2021

The road ahead for Biden’s unnamed ambassador to Canada

by Charlie Pinkerton (feat. Eric Miller), iPolitics, January 19, 2021

Trump’s political legacy: How will the U.S. president be remembered?

by Meredith MacLeod (feat. Sarah Goldfeder), CTV News, January 19, 2021

Canadian Conservatives reckon with fallout from Capitol Hill riot

by Maura Forrest (feat. Peter Donolo), Politico, January 18, 2021

Project Syndicate Commentators’ Predictions for 2021

by Project Syndicate (feat. Robert Muggah), The Washington Diplomat, January 16, 2021

Minding the gap

by CBA National (feat. Lawrence Herman), National Magazine, January 15, 2021


LATEST TWEETS

HEAD OFFICE
Canadian Global Affairs Institute
Suite 1800, 150–9th Avenue SW
Calgary, Alberta, Canada T2P 3H9

 

OTTAWA OFFICE
Canadian Global Affairs Institute
8 York Street, 2nd Floor
Ottawa, Ontario, Canada K1N 5S6

 

Phone: (613) 288-2529
Email: contact@cgai.ca
Web: cgai.ca

 

Making sense of our complex world.
Déchiffrer la complexité de notre monde.

 

© 2002-2021 Canadian Global Affairs Institute
Charitable Registration No. 87982 7913 RR0001

 


Sign in with Facebook | Sign in with Twitter | Sign in with Email