Loading articles...

A lot at stake for Alberta at NAFTA negotiations

Last Updated Aug 15, 2017 at 8:43 am MDT

USA and Canada Flags

Negotiations are poised to begin Wednesday in Washington on a new trade deal that will replace the North American Free Trade Agreement (NAFTA).

Talks between Canada, the U.S. and Mexico will include opening up access to government procurement rights, more professional movement and defending supply management.

Alberta has a lot at stake in these talks.

Carlo Dade, Director for the Centre of Trade and Investment Policy at the Canada West Foundation, told City News anywhere from 80 to 90 per cent of Alberta’s exports go to the U.S. and Mexico.

“This is a chance to make sure that the U.S. and Mexico, let’s not forget the third party in NAFTA, remain open for Canadian entrepreneurs and Canadian businesses in the oil patch,” he said, adding we can expect some co-operation between Canada and Mexico on agriculture.

“Country of origin labelling was a huge issue where the U.S. ranchers were trying to block Canadian beef and we resolved that issue partly with the help of Mexico,” said Dade.

But there are some agriculture issue which Mexico will steer clear of.

“Things like trying to gain access to sugar for sugar beet producers, the folks down in Lethbridge and Taber that produce sugar, are looking for access to the U.S. market,” he said. “Mexico may not be a benefit to them because they already have access, they’ve settled their sugar issues with the U.S. already.

It’s a similar story for dairy.

On the consumer side, raising the limits on online shopping is one thing Albertan’s may not be thinking about, but changes there could force Canadian retailers to offer more choice, which could have a big impact.

“If you buy something worth more than $20, Canadian Customs comes after you for the duty,” explained Dade. “The Mexican government doesn’t come after you until you spend $300. If you’re an American they don’t come after you until you spend $800.”

Dade believed the best case scenario is that the deal stays largely unchanged. A worst case scenario is that the U.S. goes off the rails or Mexico walks and Canada gets caught in the middle.