Canada should distance itself from Mexico as U.S. President Donald Trump seeks to abolish or renegotiate the three-nation North American Free Trade Agreement (NAFTA), according to a former Canadian ambassador to the U.S.
Derek Burney, who helped negotiate the Canada-United States Free Trade Agreement under then-Prime Minister Brian Mulroney, believes Canada and Mexico’s trade agendas share little common ground.
He says a too-close alliance between Prime Minster Justin Trudeau and President Enrique Pena Nieto would be unwise in trade talks with Trump’s administration.
“We shouldn’t be mesmerized by NAFTA into thinking we have a parallel interest in negotiating with the United States. We do not. Mexico has its own interests.” he told CTV News Channel. “The notion that Canada and Mexico together are going to negotiate against the United States, that doesn’t hold any water for me.”
Over the weekend, Trump told the media that he has already scheduled meetings with Trudeau and Nieto to renegotiate NAFTA.
On Sunday, Trudeau spoke with Nieto about the importance of bilateral relations between Canada and Mexico, and the future of NAFTA. Nieto agreed to join forces to encourage economic integration in North America, according to a statement from Peno Nieto's office.
Canada has so far taken a back seat to Mexico as Trump’s new administration increasingly signals its willingness to move quickly to safeguard American workers by axing agreements seen to jeopardize U.S. jobs.
Trump moved to pull the U.S. out of the proposed 12-nation Trans-Pacific Partnership trade pact with an executive action on Monday.
Burney says Canada has the opportunity to enter trade talks on a much stronger footing than Mexico, because of historically closer ties to the U.S. and fewer cross-border issues.
“Canada has very different relations with the United States than Mexico. We have security agreements, both continental and multi-lateral. Mexico does not. Mexico has a huge border problem with the United States in terms of immigration and drugs. Canada does not.”
Canada’s current ambassador to the U.S. David MacNaughton has confirmed preliminary trade discussions are already underway with the Trump team. He confirmed Canada’s openness to negotiate with the U.S. on a one-to-one basis.
“We will co-operate on trilateral matters when it's in our interest and we'll be looking to do things that are in our interest bilaterally. Some of them may be within NAFTA and some of them may not be,” he said on the eve of a two-day federal cabinet retreat in Calgary, where ministers will focus on the best approach to trade talks with the Trump administration.
MacNaughton acknowledged concerns that Canada could be “collateral damage” of the administration's push to rethink the trade deals, but noted the Trump team’s primary concern lies with the countries where the U.S. has large trade deficits, like Mexico and China.
“They haven't said anything specific about real problems they have with us ... but, I mean, we are part of NAFTA so there are discussions that need to be had,” he said.
The Prime Minister's Office confirmed on Sunday that discussions will be held over the next few days, including with Blackstone Group CEO Stephen Schwarzman, who was appointed in December to lead the Trump’s Strategic and Policy Forum.
Burney says concern over sudden sweeping NAFTA reforms are largely overblown since the U.S. Congress will have to weigh in on any major changes.
“The (Trump) administration cannot renegotiate a trade agreement single-handedly,” he said. “I’m not saying we should be complacent. I think we should be vigilant. But it is very difficult to react to rhetoric as opposed to substantive proposals.”
With files from The Canadian Press
