Steve Scalise warns Canada to deal on trade or get left behind

House Majority Whip Steve Scalise, R-La., warned Canada Tuesday that the Republican leadership will not wait much longer before it pushes forward with consideration of President Trump’s trade deal with Mexico. Many in Congress have been wary of voting on the deal if it doesn’t have Canada’s approval because it rewrites sections of the North American Free Trade Agreement.

U.S. and Canadian negotiators have been meeting in Washington over the last three weeks in an attempt to reach an agreement, but have not produced a breakthrough. Scalise said that the GOP leadership’s patience had a limit.

“Mexico negotiated in good faith and in a timely manner, and if Canada does not cooperate in the negotiations, Congress will have no choice but to consider options about how best to move forward and stand up for American workers,” he said.

Under Trade Promotion Authority, the law governing submitting trade deals to Congress for approval, the White House must give Congress 90 days notice before it signs a deal. The U.S.-Mexican deal was submitted to Congress on Aug. 31. The White House is under pressure to get it signed before Dec. 1, the end of the term of current Mexican President Enrique Pena Nieto, who negotiated the deal. It is unclear if Mexico’s president-elect Andres Manuel Lopez Obrador, a leftist, would support it.

“While we would all like to see Canada remain part of this three-country coalition, there is not an unlimited amount of time for it to be part of this new agreement. Congress takes seriously and intends to fully enforce the deadlines established in the Bipartisan Congressional Trade Priorities and Accountability Act,” Scalise said.

It is unclear whether Canada’s support is legally necessary to approve the U.S.-Mexican under NAFTA’s rules, as the issue has never been tested. The Trump administration has argued Canada’s assent is unnecessary. Nevertheless, many in Congress are reluctant to risk the uncertainty.

Talks have been held almost continuously between the U.S. and Canada, but agreement has been held up over issues involving Canada’s use of dairy price supports and concern over the the U.S.-Mexican deal’s impact on Chapter 19 of NAFTA, which involves settling disputes over levies and anti-dumping rules. Maintaining the provision was a key concern for Canada. The U.S.-Mexican deal scraps it.

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