<html><head><meta http-equiv="Content-Type" content="text/html charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; -webkit-line-break: after-white-space;" class=""><i class="">Two articles below…</i><div class=""><br class=""><div apple-content-edited="true" class=""><span class="Apple-style-span" style="border-collapse: separate; color: rgb(0, 0, 0); font-family: Helvetica; font-size: 12px; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-align: auto; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px; -webkit-border-horizontal-spacing: 0px; -webkit-border-vertical-spacing: 0px; -webkit-text-decorations-in-effect: none; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0; "><br class="Apple-interchange-newline"></span><a href="http://business.financialpost.com/pmn/business-pmn/nafta-big-meeting-taking-place-friday-as-countries-weigh-possibility-of-deal" style="font-family: 'Times New Roman', serif; font-size: 16px; color: rgb(149, 79, 114);" class="">http://business.financialpost.com/pmn/business-pmn/nafta-big-meeting-taking-place-friday-as-countries-weigh-possibility-of-deal</a></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><b class=""><span style="font-size: 20pt; font-family: 'Times New Roman', serif;" class="">NAFTA: Ministers part ways before all-important session next week<o:p class=""></o:p></span></b></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Alexander Panetta <o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">May 11, 2018<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">WASHINGTON — NAFTA negotiators parted ways for the weekend with multiple issues still unresolved and mere days left before what’s being described as an unofficial deadline for getting a deal this year.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">The lead ministers went home Friday, saying little about the prospects of completing a deal next week in time to meet deadlines before a pause is forced by national elections this year in Mexico and the U.S.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Mexico’s minister Ildefonso Guajardo said his country is getting closer to solving its central sticking point with the U.S.: automobile rules. Yet that matter remains unresolved, and other issues remain, he said.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Two other issues he listed involve American plans designed to remove some of the certainty from the agreement. The Trump administration wants to water down the dispute-resolution system, and create a so-called sunset clause that could end the pact after five years.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“There is a big variety of items,” Guajardo said as he left for the weekend.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“We are aware of (political) calendars. We know uncertainty is not good for markets. But, again, (the final deal) has to be a very good and balanced package.”<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">American officials estimate any deal beyond next Thursday would miss the procedural deadlines to vote on a final deal under the current Congress, which, depending on the midterm results, could be replaced by a very different-looking legislature in 2019.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">The main rift at this stage pits the U.S. against Mexico. It centres on the Trump administration’s attempt to create rules that encourage auto production in the higher-wage northern countries.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">With Canada’s hot-button issues with the U.S. not quite on the front burner this past week, Canada’s lead minister attended fewer and shorter meetings at the negotiating site.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Canadian officials walked out of the U.S. trade representative’s office Friday smiling and hailing a productive encounter, before they left for the airport and headed home.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“Sometimes a long meeting is a good meeting, sometimes a short meeting is a good meeting. And vice versa,” Freeland said.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“The atmosphere is good. There is a lot of good will, at the political level, at the level of officials… There’s a commitment to doing, really, what it takes to get it done…<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“Ministers came together to agree on what is the process, what is the path, for going forward.”<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Negotiating teams intend to consult with stakeholders back home, regroup again over the coming few days, and call their political bosses back in should the talks reach a key moment over the coming days.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Freeland also had a first meeting planned late Friday with her new U.S. counterpart, Secretary of State Mike Pompeo.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">At the White House, U.S. President Donald Trump again called NAFTA a terrible deal Friday, saying he wants better deals for his country. He made the remarks during a meeting with auto executives.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“We have some bad deals in this country. Between the Iran deal, NAFTA — we could look at any deal,” Trump said.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“Bad deals. But now we’re going to good deals… We’ll see what happens.”<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Trump suggested he doesn’t blame the other countries for resisting U.S. demands: “Mexico, and Canada, look, they don’t like to lose the golden goose. But I’m representing the United States. I’m not representing Mexico, and I’m not representing Canada… We’ll see if we can make it reasonable.”<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">But some American lawmakers are also worried.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Many Republicans dislike provisions the administration is pursuing, on rules for automakers and on weakening investor-state dispute protections. Some Democrats are also worried that the administration is doing too little to open up Canada’s dairy market.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Lawmakers have heard the administration might threaten them to pass a new NAFTA quickly. What they fear is that Trump might start the six-month process of cancelling the old agreement in order to force them into a quick vote on the new one.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">One influential Republican senator wrote in the Wall Street Journal that he would refuse that pressure tactic, in a piece titled, “Don’t try to blackmail us on NAFTA, Mr. President.”<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“To pressure us into voting for an agreement that diminishes free trade, some in the administration suggest offering a grim choice: either approve a diminished NAFTA, or the president will unilaterally withdraw the U.S. from the existing NAFTA, leaving no NAFTA at all,” said Pat Toomey, who sits on the Senate committee that handles trade bills.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">“If presented with this ultimatum, I will vote No (on the new NAFTA), urge my colleagues to do likewise, and oppose any effort by the administration to withdraw unilaterally. Pulling out of NAFTA by executive fiat would be economically harmful and unconstitutional.”<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class="">Under the U.S. Constitution, the Congress controls international commerce. But for practical reasons, and in keeping with the president’s constitutional power over foreign affairs, lawmakers have historically granted the power to the White House — as long as they’re consulted on negotiations throughout the process.<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><br class=""></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><br class=""></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""><br class=""></span></div><div style="margin: 0in 0in 0.0001pt;" class=""><font face="Times New Roman, serif" size="3" class=""><a href="https://www.reuters.com/article/us-trade-nafta/negotiators-fail-to-reach-nafta-deal-say-talks-to-resume-idUSKBN1IC1P5" class="">https://www.reuters.com/article/us-trade-nafta/negotiators-fail-to-reach-nafta-deal-say-talks-to-resume-idUSKBN1IC1P5</a></font></div><div style="margin: 0in 0in 0.0001pt;" class=""><font face="Times New Roman, serif" size="3" class=""><br class=""></font></div><div style="margin: 0in 0in 0.0001pt;" class=""><h1 class="headline_2zdFM" style="box-sizing: border-box; margin: 30px 0px 0px 87.625px; padding: 0px; border: 0px; font-family: knowledge-medium, sans-serif; font-weight: inherit; line-height: 1.18; font-size: 40px; vertical-align: baseline; -webkit-font-smoothing: antialiased; color: rgb(63, 63, 64);">Negotiators fail to reach NAFTA deal, say talks to resume</h1><div class=""><br class=""></div><div class="">WASHINGTON (Reuters) - Senior American, Canadian and Mexican officials
on Friday ended a week of talks without a deal to modernize NAFTA,
agreeing instead to resume negotiations soon, ahead of a deadline next
week issued by a key U.S. congressional leader.</div><div class=""><br class=""></div><p class="">After meeting for barely half an hour on Friday, the top Mexican and
Canadian politicians involved in the talks to update the 1994 trade pact
made it clear that major differences remained. </p><div class="">Canadian Foreign
Minister Chrystia Freeland said officials would continue working in
Washington while the Canadian and Mexican ministers returned home for
consultations.</div><div class=""><br class=""></div><p class="">“We plan to meet again as needed which I think will be soon ... the
negotiation will take as long as it takes to get a good deal,” she told
reporters after the meeting. </p><div class=""><div class="dp-slot-inline_eUPBt container_2dHIN"></div></div><p class="">Friday’s
talks were the first involving all three of the top officials in the
NAFTA negotiations - Freeland, Mexican Economy Minister Ildefonso
Guajardo and U.S. Trade Representative Robert Lighthizer - since the
latest round started on Monday. </p><p class="">Pressure to reach a deal
increased this week after U.S. House of Representatives Speaker Paul
Ryan said he needed to be notified of a new NAFTA by May 17 to give the
current U.S. Congress a chance of passing it. </p><p class="">Mexico has not
agreed to a U.S. proposal to boost North American content for autos made
in the NAFTA region, one of the main sticking points. Guajardo said his
team tried hard during the week to bridge the gap. </p><div class=""><div class="dp-slot-inline_eUPBt container_2dHIN" data-ad-type="other"><div class="ad-container_20U2_" id="dpslot_native_5453877_USKBN1IC1P5" data-google-query-id="CLaz9N-6_toCFQy1swodURECsw"><div id="google_ads_iframe_/4735792/us.reuters/custom_hub/world_of_work/article_6__container__" style="border: 0pt none;" class=""><iframe id="google_ads_iframe_/4735792/us.reuters/custom_hub/world_of_work/article_6" title="3rd party ad content" name="google_ads_iframe_/4735792/us.reuters/custom_hub/world_of_work/article_6" scrolling="no" marginwidth="0" marginheight="0" style="border-width: 0px; border-style: none; vertical-align: bottom;" data-integralas-id-a25523cc-4f48-6135-95c9-255618f3f047="" width="1" height="1" frameborder="0" class=""></iframe></div></div></div></div><p class="">“We’re not going to sacrifice the quality of an agreement because of pressure of time. We’ll keep engaged,” he said. </p><p class="">Guajardo,
who wants to reach an agreement on all the principal aspects of a
modernized NAFTA before sealing a new deal, says plenty of other issues
were outstanding. </p><p class="">U.S. President Donald Trump has called NAFTA a
“disaster” and blames it for the loss of U.S. manufacturing jobs to
lower-cost Mexico. He has repeatedly threatened to withdraw from the
1994 trade pact if it is not reworked to his liking. </p><div class=""></div><p class="">Drafting
new rules of origin governing what percentage of a car needs to be
sourced from the NAFTA region to avoid tariffs has been at the center of
the talks. </p><p class="">It forms a key plank of the Trump administration’s aim to boost jobs and investment in the United States. </p><p class="">Officials and industry sources say the three sides have been gradually narrowing their differences on autos. </p><p class="">However,
several other major issues are still unresolved, including U.S. demands
for a sunset clause that would allow NAFTA to expire if it is not
renegotiated every five years, and elimination of settlement panels for
trade disputes. </p><div class="">Writing
by David Ljunggren; Additional reporting by Daina Beth Solomon in
Mexico City; Writing by Dave Graham; Editing by Paul Simao </div></div><div style="margin: 0in 0in 0.0001pt;" class=""><font face="Times New Roman, serif" size="3" class=""><br class=""></font></div><div style="margin: 0in 0in 0.0001pt;" class=""><font face="Times New Roman, serif" size="3" class=""><br class=""></font></div><div style="margin: 0in 0in 0.0001pt;" class=""><font face="Times New Roman, serif" size="3" class=""><br class=""></font></div><div style="margin: 0in 0in 0.0001pt;" class=""><font face="Times New Roman, serif" size="3" class=""><br class=""></font></div><div style="margin: 0in 0in 0.0001pt; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 12pt; font-family: 'Times New Roman', serif;" class=""> </span></div></div></body></html>