Commerce Secretary Ross Outlines NAFTA Priorities

Updates to the “ancient” North American Free Trade Agreement (NAFTA) are needed in the areas of digital trade, services, dispute resolution and rules of origin, Commerce Secretary Wilbur Ross told CNBC, adding that NAFTA also contains weak enforcement provisions.Reworking or exiting the decades-old NAFTA was one of President Donald Trump's signature campaign issues, but official negotiations with Mexico and Canada have yet to start. Ross blamed Congress for the delay, saying that the administration is working on the technicalities of the notification to Congress required under Trade Promotion Authority (TPA/fast-track) procedures. Action on NAFTA was a promised early agenda item, and April 29 marked the 100th day of Trump's presidency.Trump should not be blamed for “something outside of his control,” Ross argued. TPA procedures require the administration to formally notify Congress of its intention to start trade negotiations 90 days before talks can be launched. The official notification has not been sent to Congress yet, although the administration submitted a draft in late March. Under the timeline, the earliest NAFTA talks could now start would be in August.The administration is waiting for Senate confirmation of Robert Lighthizer, Trump's pick for U.S. Trade Representative (USTR), before moving forward with the notice. Trump was mulling a draft executive order to pull the U.S. out of NAFTA, but never signed the order, saying he was convinced to try renegotiation instead based on conversations with the leaders of Canada and Mexico.