Mar. 3, 2005. 03:59 PM
Charest urges NAFTA modelled on EU
ASSOCIATED PRESS
BRUSSELS — Quebec Premier Jean Charest called today for closer economic and trade ties among Canada, Mexico and the United States, saying the three North American countries should take the European Union as an example of closer integration.
Charest, in Brussels attending a conference on federalism, said the 10-year old North American Free Trade Agreement needed to be strengthened, adding the current deal was not working.
“NAFTA has become a question mark for many of us,” Charest said.
He said Washington was ignoring NAFTA’s dispute settlement system, which rules on trade disputes like the import of cheaper Canadian softwood lumber into the United States, which Washington has long argued was a product unfairly subsidized.
“Now with NAFTA we’ve gone through a whole series of panels, but every time we get a panel decision which is invariably in favour of Canada, the United States goes on to another panel decision and that ends up, I think, questioning whether NAFTA is working or not,” Charest told reporters.
In a speech Charest said the three countries should be looking at the EU as an example in forging closer ties.
“We should now strive to go toward NAFTA-plus, that we should look at dispute settlement mechanisms that have binding effects on jurisdictions and whether we can open up to more trade and services and move forward,” Charest said.
The dispute over softwood lumber has become so contentious, the World Trade Organization has set up a panel to decide if Ottawa can apply $3.43 billion US in sanctions against Washington.
The United States and Canada have established the world’s largest trading partnership, with some $1.8 billion in trade across their border each day.
Charest also urged Canada to forge closer ties with the 25-nation EU, which remains Canada’s second largest trading partner.
He also made a direct appeal to the Canadian government that Quebec be allowed to participate in current negotiations between Ottawa and the EU on a trade and investment deal, meant to expand ties between the two sides. Officials in Ottawa are cool on allowing a province to sit at the table.
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