The Trump Administration has held renegotiation of the North American Free Trade Agreement as a priority from the campaign to present-day.
But it鈥檚 still not clear if enough issues can be agreed upon in a timely manner.
Chief White House Economic Adviser Larry Kudlow told Monday that negotiations aren鈥檛 dead yet.
鈥淲e want a good deal, we want a good deal for the USA, and we鈥檙e looking through a whole bunch of issues, many of the items of that treaty have already been successfully renegotiated. Some of the items remain unfinished," Kudlow said. "There is a willingness on our side, and on Canada and Mexico, to get this done. But of course the United States has got to act in its own interest, as these other countries will, too.鈥�
The International Trade Minister of one of those countries, Canada, spoke with me yesterday .
told me negotiations are certainly on the right track.
鈥淲e鈥檝e been making progress, we鈥檝e been able to close a number of chapters, we鈥檝e been able to engage. Canada鈥檚 always going to be at the table, we鈥檝e been open, we鈥檝e been positive, and constructive in trying to find alternatives. You have seen perhaps on the rules of origin for the important auto sector," Champagne said.
He said the fact discussions continue is a good sign, although there is a bit of a timing issue with political realities in the countries.
"There鈥檚 the Mexican election, the U.S. midterm election, but often times when I look at these trade agreements: they will be with us for decades, what matters I think under the circumstances we have is to have a good deal," Champagne said. "We know that NAFTA was negotiated what 24 years ago, about, e-commerce did not even exist, so the way we transact, the way we buy, the way we sell has changed significantly. So we need a modernized agreement which will reflect how the economy works, and also reflect the integrated nature of our supply chain.鈥�
On the importance of negotiations for workers
鈥淚f you put it in very simple terms for workers, is that: how can we make North America more competitive, how can we build more in North America, and how can we sell together to the rest of the world? We鈥檙e doing these agreements because we want to protect the middle class, we want to bring more jobs into North America, and making sure that we build prosperity not only for now, but for decades to come.鈥�
On why it's important to keep supply chains in mind
鈥淭he nature of our relationship is not one of buyer and seller, it鈥檚 one where we make the things together. So when you look at rules of origin you have to look at the entire supply chain between Canada, the United States, and Mexico, and I think that鈥檚 why you鈥檝e heard people from the industry say 鈥榟old on for a minute, let鈥檚 make sure that we get this right, because this is going to impact jobs in every country.鈥� I think what we鈥檝e come to realize, I think, with our U.S. colleagues is that a decision on one side of the border will have an impact on both sides鈥bout 40% of everything Ohio does is exported to Canada, but 50% of that 40% is intracompany trade, so it鈥檚 parents selling to affiliates, it鈥檚 within the same company. So that鈥檚 why we need to keep that border as thin as possible鈥f you look at the auto sector鈥hey would tell you that parts would that parts would move sometimes six to seven times across the border before they end up in a finished vehicle.鈥�
On whether 'America First' is harming the trade relationship
鈥淲e鈥檝e been engaging with mayors, congressman and women, Senators in the U.S. Senate, I think people realize now鈥攖he danger, Tony, is that we took each other for granted, and I think it鈥檚 about time that we invest in that relationship.鈥�
