NAFTA Renegotiation Status Update: Third Round Of Talks Conclude In Ottawa, Fourth Round Begins In Washington On October 11

The third round of talks on “renegotiation and modernization” of the North American Free Trade Agreement (NAFTA) was held in Ottawa, Canada, from September 23-27, 2017. According to a Trilateral Statement on the Conclusion of the Third Round of NAFTA Negotiations, the negotiators “made significant progress in several areas through the consolidation of text proposals, narrowing gaps and agreeing to elements of the negotiating text.” While the negotiations themselves are not conducted publicly, the Trilateral Statement describes “meaningful advancements…in the areas of telecommunications, competition policy, digital trade, good regulatory practices, and customs and trade facilitation.” The fourth round of talks is scheduled to take place in Washington from October 11-15, 2017. In the interim, Canadian, Mexican, and U.S. negotiators “will continue their work and consult with their respective stakeholders” in preparation for the next round.

Press reports indicate that negotiators “are working nights and weekends to bring the deal to a close” but that many of the most contentious issues have yet to be discussed formally. For example, the most recent Trilateral Statement indicates that “initial offers” were exchanged between the parties regarding “the area of market access for government procurement”, which has long been among the most contentious areas of the U.S.-Canadian trade relationship. Mexico also sees government procurement as a key topic in the talks. Mexican Secretary of the Economy Ildefonso Guajardo has indicated that the fourth round of NAFTA renegotiations will raise “substantial challenges”, and that the process could extend into 2018.