Commerce's Ross Downplays 2017 NAFTA 2.0 Wrap Up

Negotiations on the "NAFTA 2.0" are not likely to be wrapped up in 2017 despite a desire by all three parties to make that happen, according to U.S. Commerce Secretary Wilbur Ross."In an ideal world, we'll try to get it done by the end of this calendar year," Ross told reporters during the SelectUSA Investment Summit. "That would be a record speed for any big trade negotiation, so I don't know whether we'll be able to do that, but we are certainly mindful of the calendar and the fact that the calendar is fundamentally not our friend."Mexico has been pushing to get the talks concluded as quickly as possible, eyeing their presidential elections in 2018 as a key reason to push ahead. Plus, Ross also pointed to the U.S. mid-term elections in 2018 and the expiration of Trade Promotion Authority (TPA) next year as factors to get the talks done sooner rather than later.However, the delay in getting U.S. Trade Representative Robert Lighthizer in place kept the formal negotiation launch on hold, Ross observed, as the talks now cannot take place until late August.As for who will take the lead in the talks, Ross signaled Lighthizer has the statutory responsibility but the complexity of the talks means more will play key roles. "We all feel this is a sufficiently complicated process that we're going to bring as many intellectual resources to bear on it as we can," Ross pledged.USDA and Secretary Sonny Perdue will be in an advisory role in the talks, telling Bloomberg News that agriculture is "fairly content" with NAFTA except for some "irritants" on issues like sugar and dairy.In talks today with his Mexican and Canadian counterparts, Perdue said the U.S.-Mexico sugar deal will be discussed and also other trade matters. The message to Canada, Perdue said, is "If you have a supply management system, the supply has to be managed," adding they have created "a glut on the market."Meanwhile, the U.S. National Governors Association (NGA) will hold their annual summer meetings about one month before the NAFTA 2.0 talks get underway. And the confab will feature new attendees in the form of regional leaders from Canada and Mexico, according to NGA Executive Director and CEO Scott Pattison.Aiming to have more influence over U.S. processes in the talks, Pattison said, "I think there will be a lot of discussion of not only trade generally but NAFTA in particular."