VANCOUVER - The message out of a high-level meeting on the North American Free Trade Agreement is that liberalized trade works, despite political opposition and occasional irritants such as softwood lumber.
Trade among the United States, Mexico and Canada has tripled since the agreement was signed in 1993, U.S. Trade Representative Susan Schwab said Tuesday after the two-day NAFTA Commission meeting wrapped up.
"The fact of the matter is NAFTA works,'' said Schwab.
International Trade Minister David Emerson, who hosted Schwab and Mexico's Secretary for the Economy Eduardo Sojo, said the three worked on ways to take NAFTA a little bit further without reopening it.
"We're simply looking at how NAFTA can, with some seemingly innocuous changes, operate much better, much more successfully . . .'' he said.
"We strongly stand behind NAFTA as a living document,'' echoed Schwab at the group's news conference.
"We are always looking for ways to make it work better. Some of those are very practical, very pragmatic and I suspect from the media's perspective very boring.''
The group's final communique indeed was mother's milk to trade wonks: improving NAFTA's rules of origin, reducing barriers on swine, steel consumer electronics and chemicals and finding ways to boost North American competitiveness.
But the over-arching theme was that freer trade benefits everyone.
Not everyone accepts that message. U.S. politicians looking to next year's elections are calling for NAFTA to be reopened to insert tougher rules on labour and the environment.
The U.S. sugar industry is also balking at NAFTA provisions, which come into effect next year, that open the border to Mexican sugar and sweeteners.
Schwab said the Republican administration is committed to implementing those clauses on schedule Jan. 1.
"It is time to tie up the remaining loose ends of the NAFTA agreement and, as we've discussed, move forward,'' she said.
Sojo said opening the border to Mexican sugar will have a huge impact on his country's industry.
Schwab sidestepped the renewed American trade debate.
"It is not a good idea for me to wade into electoral politics in the United States at this time other than to say, as we've made clear here today, that NAFTA really has been a success,'' she said.
Emerson on U.S. political issues
After Schwab left, Emerson said he understands continued heat on trade in the United States is driven by its electoral system. The high incumbency rate means a nomination race is more important than the election itself, driving candidates to take extreme positions.
"People are basically trying to appeal to their party roots,'' he said. "Until you get into a general election context you don't have the same kind of moderating impact that perhaps one once saw.''
None of the three saw any reason to reopen NAFTA to address concerns about labour conditions or environmental standards, which are covered in the treaty's side agreements.
"For its time, NAFTA was really a forward-leaning and well ahead of its time in terms of including labour and environmental provisions,'' said Schwab.
The three also committed to pushing for movement in World Trade Organization negotiations -- known as the Doha round -- which have been deadlocked for years over western agricultural subsidies.
They also tried to allay fears that a spate of health and safety problems with Chinese goods might prompt restrictions on imports from the Asian powerhouse.
"The problems that are being experienced now I think all of us, including the Chinese leadership, would agree that as sovereign governments we have a responsibility to look after the health and safety of our citizens,'' said Schwab.
"But we need to do so in a way that is both effective and does not become an excuse for protectionism.''
Emerson said China's acceptance of WTO rules has had a positive impact on international trade.
"I think we are all hoping China will engage in this next round of WTO discussions because they will be a critical player to determine if in fact we can get from where we are today to an agreement,'' he said.
Schwab and Emerson discussed renewed tension on the softwood file in their bilateral meeting.
Schwab said the United States regretted having to launch an arbitration alleging Canada is not complying with the softwood lumber agreement just 10 months after it was signed.
"We're very disappointed that we find ourselves in this position,'' she said. "We remain committed to a successful implementation of the softwood lumber agreement for the seven to nine years that it was designed to stand.''
Emerson said discussion on the issue was cordial because, unlike the years of legal wrangling under NAFTA rules, the softwood deal has a swift, binding dispute-settlement mechanism.
Emerson retained his trade portfolio in Tuesday's cabinet shuffle.
"Last time I saw the prime minister he kept laying more trade agreements that he wanted me to negotiate on me,'' he said before the new cabinet was announced in Ottawa.
