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At NAFTA Talks, Businesses Eager to Say: Do No Harm

by Reuters

   WASHINGTON --

   Steps away from this week's NAFTA trade negotiations, business unified
   in hopes of sending a singular message: do no harm.

   Representatives from the United States, Canada and Mexico convened
   behind closed doors at a Washington hotel in an effort to strike a new
   North American Free Trade Agreement. And not far away, industry
   representatives from all three nations sat waiting and hoping to
   influence the talks.

   After two days of meetings, lobbyists admitted privately that they
   remained mostly in the dark, swapping rumors about dates and times of
   future meetings but unsure what progress was being made in the first
   round of discussions. The meetings were largely expected to be
   procedural, with little discussion on substance in the early days.

   The decision to renegotiate NAFTA has largely been driven by politics,
   chiefly U.S. President Donald Trump, who earlier this year threatened
   to withdraw entirely.

   Business, on the other hand, has largely praised the agreement and
   hopes to persuade all three governments to make minimal changes to the
   pact.

   More than $1 trillion in trade

   U.S.-Canada-Mexico trade has quadrupled since NAFTA took effect in
   1994, surpassing $1 trillion in 2015.

   "We're all in the same boat," said Flavio Volpe, president of the
   Canada's Automotive Parts Manufacturers' Association. "In the end we
   all serve primarily the U.S. consumer. So if you're going to raise the
   cost structure, or if you're going to change the dynamic flow of goods
   or people in those three countries, you're really hurting the cost to
   market for the U.S. customer."

   The U.S. had an autos and auto parts trade deficit of $74 billion with
   Mexico last year, without which, there would have been a U.S. trade
   surplus

   The United States had a much smaller $5.6 billion automotive trade
   deficit with Canada last year, but autos was the still a major
   component of an $11.8 billion overall U.S. goods trade deficit with
   Canada last year. But including services trade, the United States ran
   an overall surplus with Canada.

   Volpe's counterparts from the United States and Mexico were also on
   hand, with hopes of presenting a united front not to see a disruption
   to the auto industry.

   Matt Blunt, president of the American Automotive Policy Council, which
   represents General Motors, Ford and Fiat Chrysler Automobiles, stopped
   by the talks hotel to chat with negotiators, answer questions and
   "glean information" about U.S. negotiating objectives.

   However, he said insights into the talks were hard to come by, as
   negotiating teams had not yet revealed details of their proposals to
   each other.

   "There are a lot of poker-faces around here," he said.

   Lobbyists always nearby

   He wasn't the only American lobbyist floating in and out of the hotel.
   Some held lunch meetings in the hotel restaurants and then returned to
   their downtown offices. From mining, to textiles to dairy farmers,
   various groups held sideline meetings.

   About 100 business representatives from Mexican companies waited in a
   meeting room to see if there were any questions negotiators might have
   for them. And Canadian industry groups mostly worked on their own.

   For the most part, the business groups presented a united front.

   Juan Pablo Castanon, president of the Mexican business group Consejo
   Coordinador Empresarial, said his group has been working with the U.S.
   Chamber of Commerce for three years. After the November U.S. elections,
   they began working to tout the benefits of NAFTA.

   "The level of contact and communication is intense and one of
   collaboration," Castanon said.

   The U.S. Chamber of Commerce, the largest business lobby in Washington
   that represents companies big and small across the country, confirmed
   they plan to attend all the sessions, where they expect to hold
   sideline meetings with other business groups and government officials.
   The Chamber may also hold sideline events or briefings during future
   discussions.

   Even industry groups who weren't in agreement with their North American
   counterparts found other stakeholders to discuss common ground.

   The Canadian Dairy Farmers are at odds with their American
   counterparts, but still found a chance to talk, said the Canadian
   group's spokeswoman Isabelle Bouchard.

   "To have discussions with counterparts within our own industry and even
   different industries who are in similar situations than us, it's
   important, and we have seen though past trade negotiations how
   important it is," Bouchard said.