Canada says progress on NAFTA, but ways to go yet - Reuters

According to reporting by Reuters, Canada's Foreign Minister Chrystia Freeland stated that NAFTA renegotiations are making good progress, but there is still lots of work to do.

Key quotes (Source: Reuters)

Freeland also said she would be flying to Washington for a meeting on Thursday with U.S. Trade Representative Robert Lighthizer, who is pushing hard for a quick deal in principle to finish before a July 1 presidential election in Mexico.

The three members of the North American Free Trade Agreement (NAFTA) could announce by mid-April the outlines of a settlement that would likely tackle the key issue of autos content while leaving other contentious chapters to be dealt with later, say sources familiar with the matter.

“We’re making good progress on NAFTA ... having said that, we’re not there yet,” Freeland told business executives in Winnipeg.

One of the biggest chapters to be resolved is a U.S. demand that the North American content of vehicles made in NAFTA nations be increased to 85 percent from 62.5 percent.

Only six of the roughly 30 chapters have been closed and wide differences remain on topics such as dispute resolution and government procurement.

Canadian officials do not see how the three nations can close the remaining chapters in the next two weeks, a source familiar with Canada’s negotiating position said on Wednesday.

“There’s a possibility they could come up with a symbolic agreement in principle that signaled they had reached a consensus on five or six key issues,” said the source, who requested anonymity given the sensitivity of the situation.