The Trump administration鈥檚 opening salvo in the long-awaited renegotiation of the North American Free Trade Agreement calls on Canada to drop its guard on a number of protected industries including telecom, financial services, and agriculture.
The proposals came on a day when the U.S. president promised to shield the U.S. manufacturing base from foreign influence, touted the superiority of American goods, and pledged to stop other countries from 鈥渄raining our wealth,鈥� in a speech to kick off 鈥淢ade in America鈥� week.
In its newly released 16-page list of goals ahead of the start of the trilateral trade talks, the U.S. administration said it wants to grow its exports and 鈥渞eclaim American prosperity鈥� through 鈥渢he elimination of unfair subsidies, market-distorting practices by state-owned enterprises, and burdensome restrictions of intellectual property.鈥�
These priorities should come as 鈥渮ero surprise,鈥� according to one international trade expert.
Ian Lee, a professor at Carleton University鈥檚 Sprott School of Business, told 麻豆传媒 Channel that Trump is essentially saying his 鈥淏uy American鈥� policy will stand while Canada and Mexico offer concessions to the U.S.
鈥淚n other words, we want you to open up . . . but by the way, we want to continue to protect,鈥� he said.
Lee said he hopes the negotiations, which are set to begin as early as mid-August, will see both sides ratchet down their protectionist policies, rather than bargain over who gets to keep which industries isolated from the other.
It鈥檚 a move he believes will ultimately play out in Canada鈥檚 favour.
鈥淚 hope we have the courage to say, 鈥榃e are going to open up Canada, but by the way, you Americans are going to have to get rid of that pernicious Buy American (policy),鈥欌�� he said. 鈥淭hen NAFTA will be win, win, win.鈥�
The Trump administration has held Canada鈥檚 feet to the fire in recent months over key trade files, imposing steep duties on softwood lumber exports, railing against Canada鈥檚 supply managed dairy system, and threatening to impose a border adjustment tax.
All of this on top of the president鈥檚 sweeping proclamations about the importance of buying American to safeguard U.S. manufacturing jobs and drive economic growth in his country.
Lee is curious as to which bargaining chips U.S. negotiators will be willing to part with in order to see a deal get done. He expects the tone in the trilateral talks will be set by the Americans. If they concede something, he says, the Canadians will quickly follow suit.
鈥淚t really depends on what the Americans are willing to offer up to the Canadians and the Mexicans. Will they give up on 鈥淏uy American,鈥� or really water it down? I think this prime minister has the leadership, and the vision, and the understanding to recognize he is going to have to give up some of the protections in Canada if we want the Americans to give up some their protections that are hurting us,鈥� he said.
Lee has long advocated for the loosening of Canadian guards against U.S. businesses setting up shop in Canada. He remains confident that next iteration of NAFTA will ultimately benefit the Canadian economy, so long as it breaks down the current barriers between the two nations.
鈥淚 don鈥檛 see this as a depressing time. I see this as a huge opportunity facing Canada,鈥� he said. 鈥淚 think that we have leverage simply because they see us as a good neighbour. We saw it with NAFTA in 1993. I think we can pull off a good deal for us and the U.S. in these negotiations.鈥�
