OTTAWA (Reuters) – Trade challenges from U.S. firms
will continue to cause turbulence for Canada even if talks to
modernize NAFTA are successful, a senior Canadian government
official said on Tuesday.
Canada sends 75 percent of its goods exports to the United
States and is vulnerable to what Ottawa complains is increasing
U.S. protectionism since President Donald Trump took power in
January 2017.
Talks to update the North American Free Trade Agreement are
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moving slowly as Canada and Mexico seek to address a series of
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months.
“Even if a new NAFTA were to be signed tomorrow I think we
would still face a lot of turbulence in our relationship with
the United States on trade,” said Timothy Sargent, the top
bureaucrat in Canada’s Trade Ministry.
Sargent, speaking to an Ottawa conference organized by the
Canadian Global Affairs Institute, noted recent U.S. moves to
impose duties on Canadian softwood lumber, commercial airliners
and some paper products. All were prompted by complaints from
American firms.
Sargent also cited Trump’s recent move to place duties on
imports of solar panels.
“I think we can expect more of that,” he said. “The way the
U.S. system is set up (makes) it very easy for businesses that
think they face challenges to go and get countervail or
antidumping actions. So I think there are very big challenges
for Canada.”
Steve Verheul, Canada’s chief NAFTA negotiator, is due to
address the conference later on Tuesday.
Last December Canada launched a wide-ranging trade complaint
against the United States at the World Trade Organization,
challenging Washington’s use of anti-dumping and anti-subsidy
duties.
U.S. Trade Representative Robert Lighthizer, speaking at the
end of the most recent NAFTA talks in Montreal last month,
called the move “unprecedented, imprudent, even spiteful.”
