If there is one thing that keeps Prime Minister Justin Trudeau awake at night it’s the unresolved trade deal between the United States, Mexico and Canada.
“There’s a level of unpredictability, that’s out of our control and we know if the relationship with the U.S. goes sour, we could be doing everything right at home and our economy would still end up suffering,” Trudeau told Global News. “That’s the level to which we are dependent on the U.S. So that’s something that I think people know we’ve devoted an awful lot of energy to.”
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As 2017 comes to a close, the prime minister said his focus for 2018 will be on the economy and securing a modernized North American Free Trade Agreement.
Talks are scheduled to resume in Montreal in January with major issues like car manufacturing, dispute settlement and an expiry clause yet to be resolved, while U.S. President Donald Trump has complained publicly that NAFTA has left the United States with a huge deficit in trade with Canada.
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Canadian negotiators were in Washington last week for “intersessional” NAFTA talks. One of the main sticking points is demands from the Trump administration over automotive manufacturing which could cut in half the content for North American-made vehicles from outside the U.S. along with increased regional quotas.
Canada and Mexico rejected the U.S. proposal last month in Mexico City and will look to offer a counter-proposal in Montreal.
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Trudeau said the “red line” for his government is whether or not a new NAFTA deal is going to be good for Canadians.
“I hate to talk about clear red lines because the red line for us is, is the deal going to be good for Canadians or not?” he said. “Is it going to protect individuals’ rights and workers’ rights? Is it going to give us an opportunity to grow the economy in ways that include everyone, include the middle class and those working hard to join it? That’s the question I’m looking at.
“And if it doesn’t, unlike what one of our former prime ministers said, I’m not going to sign any deal at any cost,” Trudeau added. “If it’s a bad deal, I’m going to walk away from it, because no deal is better than a bad deal for Canadians.”
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For Trudeau, he will also use the New Year to hit the reset button for his administration which has been at the centre of a series of ethics controversies. The prime minister defended his government, specifically Finance Minister Bill Morneau, and announced he will embark on another series of town halls across Canada in January.
Canada will also have to continue working with the erratic presidency of Trump, something Trudeau said that people across the country “are very aware of.”
“My responsibility is to have a constructive relationship with the United States and stand up very strongly and clearly for Canadian positions and values,” he said. “I have a good relationship with the president where he knows we disagree on a whole bunch of things, and so do I, obviously, but we still manage to work together on the things that we do agree on, like making sure that the middle class is doing better. That’s where we find alignment.”
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