Commerce Secretary Wilbur Ross Expects NAFTA Negotiations to Conclude by Early 2018

Jun 01 2017
Commerce Secretary Wilbur Ross will play a key role in NAFTA negotiations.

And the formal talks are likely to begin in mid-August.

Commerce Secretary Wilbur Ross said Wednesday he expects Congressional discussion over the North American Free Trade Agreement (NAFTA) to begin by mid-July, with formal negotiations set to start by Aug. 16. 

Speaking at a discussion hosted by the Bipartisan Policy Center, Ross did not provide many concrete details about what specifically might come up during the negotiations. But he did say that an update is needed because the original agreement does not account for financial services, technological changes and the digital economy we have today. 

Ross communicated two guiding principles moving forward, the first to "do no harm" and the second to address concessions made during the negotiations over the Trans-Pacific Partnership (TPP), which the United States officially withdrew from earlier this year. The Trump administration plans to use NAFTA as a way to address regulatory practices, intellectual property rights, and labor and environmental standards, Ross said. 

Enforcement of rules and fair play will be key themes moving forward in order for the U.S. to get the most benefit from NAFTA, Ross added. A handful of longstanding issues have already come up in informal talks, Ross noted, including sugar imports from Mexico and dairy and soft lumber from Canada.  

But while those informal discussions have been taking place, the United States is currently in a holding pattern, as it must wait 90 days from the time the White House officially notified Congress of its intent to renegotiate NAFTA to officially start talks. U.S. Trade Representative Robert Lighthizer gave notice to Congress on May 18.  

Negotiations must also adhere to Trade Promotion Authority, or "fast track," which is an expedited process by which Congress can approve or reject, but not change, a trade deal struck by the president. Formal talks are likely to conclude by early next year, ahead of Mexico's impending 2018 presidential election, Ross added. The 2018 midterm elections in the United States also are a factor. 

Trade has been a key issue for the Trump administration, and the president often mentioned his desire to renegotiate NAFTA on the campaign trail. But most of the White House's efforts on trade thus far have come through executive orders designed to kickstart a longer process, such as efforts to strengthen Buy America preferences and reduce the trade deficit.  

Section 232 investigations into steel and aluminum imports also are underway, with the Commerce Department examining whether these imports are a threat to national security. Ross previously has said he expects his department to conclude those investigations by the end of the month, and the president could take action based on Commerce's recommendations. 

Ross wasn't the only speaker at Wednesday's event, which was hosted by Jason Grumet of the Bipartisan Policy Center. Chip Bowling, chairman of the Corn Growers Association, and Jack Gerard, CEO of the American Petroleum Institute, shared how NAFTA impacted their respective industries and how potential changes might affect them. 

This blog post was written by AAM interns Kami Demirag, Megan Salrin and Erica Maddox.