Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Canada says reopening USMCA trade pact could be a 'Pandora's box'

Published 04/04/2019, 06:31 PM
© Reuters. FILE PHOTO:  Canadian Foreign Minister Chrystia Freeland takes part in a news conference in Washington

By David Ljunggren

OTTAWA (Reuters) - Canadian Foreign Minister Chrystia Freeland on Thursday cautioned against the idea of reopening a new continental trade pact with the United States and Mexico, saying it could be a "Pandora's box."

U.S. House Speaker Nancy Pelosi told Politico this week that changes needed to be made to the text of the United States-Mexico-Canada (USMCA) trade deal to ensure its labor provisions could be enforced.

"When it comes to the issue of actually opening up the agreement, that's where Canada's view is, we've done our deal," Freeland told reporters on the sidelines of a NATO meeting in Washington when asked about Pelosi's comments.

"This was a very intense negotiation. A lot of time, a lot of effort went into it, compromises were made on all sides, and we believe that people need to be very careful around opening up what could really be a Pandora's box," she added.

One part of the deal - which was signed last November after 15 months of sometimes rancorous negotiations - was a chapter designed to boost labor standards and wages in Mexico.

Democratic lawmakers say the pact must ensure workers in Mexico have the right to organize, a step that would require new Mexican labor laws.

"Canada has done its share, we have done our work, and now it's up to each country to work on ratification," said Freeland.

She reiterated that Canada could find it hard to press ahead with efforts to ratify the treaty as long as U.S. maintained tariffs on imports of Canadians steel and aluminum.

Canada has campaigned hard for the removal of the punitive measures, which the Trump administration unveiled last May, citing national security.

U.S. officials have suggested the tariffs could be scrapped if Canada agreed to quotas on exports of steel and aluminum, an idea that Ottawa rejects.

© Reuters. FILE PHOTO:  Canadian Foreign Minister Chrystia Freeland takes part in a news conference in Washington

"We are saying that will not happen. We do not want to limit the growth of that industry," Canadian Prime Minister Justin Trudeau told reporters in Alma, Quebec.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.