US Embassy downplays NAFTA threat, Harper government monitoring
The Harper government says it monitoring the threat posed to NAFTA by a group of American congressmen. At a news conference on Parliament Hill Tuesday to tout Canada's move to further reduce tariffs for manufacturing inputs, Finance Minister Jim Flaherty said, "We're always worried about protectionist tendencies."
The Finance Minister's comments come as a bill introduced by Mississippi Democrat Gene Taylor picks up the support of congressmen in both parties and in all geographic parts of the United States. Flaherty though says he is sure the Obama administration is onside with statements made by world leaders at recent G20 summits, statements where leaders promised to avoid protectionist measures. At the upcoming G20 meetings in Toronto, Flaherty says Canada will continue to push a freer trade agenda.
"Obviously we're not only resisting protectionist tendencies in Canada, says Flaherty. "We're, in fact, reducing tariffs and we're leading the way in the G20 in showing that free and open trade is the way to go." Flaherty says history shows that putting up trade barriers ends up hurting, not helping, the country that invokes them.
At a Canadian Club luncheon at Ottawa's Chateau Laurier Hotel, America's Ambassador to Canada David Jacobson told his business audience that Canada and the United States need to worker smarter on the border to keep trade moving in light of security improvements. Speaking with reporters afterwards, Jacobson downplayed the idea that Congress is about to take the United States out of NAFTA.
"I believe that in the NAFTA agreement, every five years, there is a possibility of withdrawal," said Jacobson. "Every five years we go through this and every five years there are a handful of members of congress that support this initiative but I don't think it's going anywhere."
Still, International Trade Minister Peter Van Loan says he is aware of the bill and will continue to monitor its progression through the House of Representatives, even though he says he is "optimistic that this will not come to pass."
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