Deficit reduction tops NAFTA priorities list

WASHINGTON — The Trump Administration's top priorities in seeking to renegotiate the North American Free Trade Agreement (NAFTA) are to reduce the trade deficits with Canada and Mexico and improve market access in those countries for U.S. manufacturing, agriculture and services.

That's the crux of a statement released July 17 by U.S. Trade Representative (USTR) Robert Lighthizer.

"President Trump continues to fulfill his promise to renegotiate NAFTA to get a much better deal for all Americans," Mr. Lighthizer said.

"Too many Americans have been hurt by closed factories, exported jobs, and broken political promises. Under President Trump's leadership, USTR will negotiate a fair deal,…break down trade barriers and give Americans new opportunities to grow their exports…."

Since NAFTA was implemented in 1994, the U.S. bilateral goods trade balance with Mexico has shifted from a $1.3 billion surplus to a $64 billion deficit in 2016, the USTR said. Market access issues have arisen in Canada with respect to dairy, wine, grain and other products — barriers that the current agreement is unequipped to address.

The negotiating objectives the USTR plans to pursue include adding a digital economy chapter and incorporating and strengthening labor and environment obligations that are in NAFTA side agreements.

The administration also will work to eliminate unfair subsidies, market-distorting practices by state-owned enterprises and burdensome restrictions on intellectual property.

Since notifying Congress on May 18 of its intentions to initiate NAFTA renegotiations, the USTR has been conducting consultations with Congress, stakeholders and the public at large.

The USTR sought public comments, received more than 12,000 responses, and heard directly from more than 140 witnesses throughout three days of public hearings. During this process, the administration received valuable advice that directly impacted the development of the negotiating objectives.

According to standards established by Congress in the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA), negotiations will begin no earlier than Aug. 16.