Japan and the European Union organized a meeting for Tuesday in Geneva, where vice and deputy ministers from Canada, the EU, Japan and South Korea will gather to talk about the punishing levies threatened by U.S. President Donald Trump. (Carlos Osorio/Associated Press)

NAFTA agreement hinges on auto rules, says Freeland

Canadian, Mexican and U.S. negotiators trying to hammer out a new North American Free Trade Agreement are focussing on the automotive industry rules as the centrepiece of the new NAFTA deal, Foreign Affairs Minister Chrystia Freeland said in Washington Thursday.

In an exchange with reporters between sessions at the U.S. trade representative’s office across from the White House, Freeland said she and her peers are now down to the finest details on auto rules of origin.

“(This) really is the heart of this negotiation,” she said.

“I believe very strongly, and I think this is a view shared by the two other countries, that rules of origin for autos, the highly integrated automotive sector, is really at the heart of the NAFTA negotiation.

“If we can get that right, that will be the core of a successful agreement.”

Canadian Foreign Minister Chrystia Freeland, Mexican Economy Minister Ildefonso Guajardo and U.S. Trade Representative Robert Lighthizer pose for a photo during a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico March 5, 2018. (Edgard Garrido/REUTERS)

Officials from Mexico and the U.S. are saying a new deal is likely within weeks, although Freeland wouldn’t be pegged down on a timeline.

Prime Minister Justin Trudeau said the three North American neighbours are working against the clock.

“As I’ve said a number of times, we recognize the timelines that are in play, particularly, for Mexico with a presidential election that is well on its way as well as pressure from the United States around this fall’s midterm elections,” Trudeau told reporters in London. “We’ve seen an opportunity to make significant progress on the NAFTA file, we are making sure that we’re engaging in a way that is as fulsome and comprehensive as possible.”

From the very beginning of negotiations Canada’s approach was to engage on multiple levels to connect with the U.S. administration and Ottawa continues that approach, Trudeau said.

“As we all know this is a complex and an extremely important set of negotiations,” Trudeau said. “The impact of negotiations on NAFTA will have a direct outcome that will affect lives of millions of Canadians, Americans and Mexican citizens.”

With files from The Canadian Press

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