U.S. President Donald Trump announced Sunday that he will be meeting with Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto as he moves quickly on his campaign pledge to renegotiate the North American Free Trade Agreement. Yet faced with negotiations that could rewrite the rules with its biggest trading partner, Trudeau’s office was staying silent Sunday, declining to comment on Trump’s first official statements on NAFTA since taking office.
But, Canada’s relations with the new administration are expected to top the agenda when Trudeau meets with his cabinet ministers during a retreat in Calgary Monday and Tuesday. Trump – who made clear his “American first” agenda during his inauguration speech — used brief remarks Sunday during a White House ceremony to reaffirm his intent to reopen the trade pact between Canada, the United States and Mexico. That will start with upcoming meetings with Trudeau and Pena Nieto, he said.
“We’re going to start some negotiations having to do with NAFTA. . . . I ran a campaign somewhat based on NAFTA,” Trump told an audience of administration staff. “We’re going to start re-negotiating on NAFTA, on immigration and on security at the border,” Trump said. No date was announced for the meeting with Trudeau. The prime minister’s office said Sunday it did not have any additional details beyond a telephone call between the two leaders Saturday when they said they “looked forward to meeting soon. Canada’s relations with the new administration in Washington are expected to top the agenda when Trudeau meets with his cabinet ministers during a two-day retreat in Calgary Monday and Tuesday, which will include discussions with an adviser to Trump.
Discussions will also include Stephen Schwarzman, the CEO of the Blackstone Group investment firm appointed in December to lead the President’s Strategic and Policy Forum, the Prime Minister’s Office confirmed Sunday. Dominic Barton, the head of the Trudeau government’s Council of Economic Advisers, is also set to attend. During their call, both Trump and Trudeau underscored the importance of the Canada-U.S. relationship, according to a statement from the prime minister’s office. “The prime minister noted the depth of the Canada-U.S. economic relationship, with 35 states having Canada as their top export destination,” the statement sad. White House spokesperson Sean Spicer said the two leaders had a “constructive” conversation about “strengthening the relationship between our two nations.” “They also discussed setting up additional meetings in the days to come, which we will follow up on,” Spicer said Saturday. Trump’s brief comments on Sunday were largely focussed on Mexico. “I think we’re going to have a very good result for Mexico, for the United States, for everybody involved. It’s very important,” Trump said.
Still, Trudeau’s government is gearing up to deal with a new administration in Washington as it braces to see how Trump’s tough talk on trade now become policy that could impact the cross-border economy. In the days following Trump’s election last November, Canadian officials sought to appear open to the incoming president initiatives. That included voicing a willingness to discuss NAFTA. “I think any agreement can be improved on,” Canada’s ambassador to the United States, David MacNaughton said. In his inauguration address Friday, Trump made clear his intent to move on what had been a core plank in his campaign. “We must protect our borders from the ravages of other countries making our products, stealing our companies, and destroying our jobs. Protection will lead to great prosperity and strength,” Trump said.
As Trump was sworn in, the White House website was quickly changed to reflect the priorities of the incoming administration. That includes Trump’s commitment to renegotiate, even withdraw from NAFTA. “If our partners refuse a renegotiation that gives American workers a fair deal, then the President will give notice of the United States’ intent to withdraw from NAFTA,” the website states. John Baird, a former Canadian foreign minister now a senior adviser with Bennett Jones LLP, warned the new trade reality will almost certainly hurt the country. “There’s no realistic way we’re going to renegotiate a NAFTA deal that’s better for Canada.” The push for change is driven by rising protectionist sentiment across the U.S., not just in the White House, Baird said. “People have to understand this isn’t just the American president. The American public has moved substantially to this stance.”
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