While some experts sounded the alarm that a Democrat-controlled House could spell trouble for the passage of the United States-Mexico-Canada Agreement, Canadian Ambassador to the U.S. David MacNaughton said Canadians have nothing to worry about.
鈥淥bviously there鈥檚 going to be some turmoil and some uncertainty in terms of where the Congress goes, but I think from Canada鈥檚 point of view, I don鈥檛 see any real negative implications,鈥� MacNaughton said in an interview with Don Martin on CTV鈥檚 Power Play.
MacNaughton added that he鈥檚 aware of which Democrats are likely to take over leadership positions on powerful House committees that could tip the scales when it comes to USMCA.
鈥淔or the most part, while I wouldn鈥檛 call them fervent free traders, I think they recognize that there have been improvements made from the original NAFTA,鈥� he said.
In recent days, experts have been warning that the midterm election outcome could spell trouble for the trade deal that negotiators spent months nailing down. Those concerns have centered on Democrats potentially pushing back simply to prevent Trump from getting a 鈥渨in鈥� and the tougher road to USMCA approval in a Democrat-controlled House.
But now, MacNaughton said it is not only unlikely the midterms would hurt the passage of USMCA, but that any changes the Democrat-controlled House pushes for would be positive for Canada.
鈥淚f they were going to try to make any changes to the USMCA it鈥檇 be in terms of tightening the enforcement of environmental and labor standards, and I don鈥檛 think we鈥檝e got any problem with that at all,鈥� he said.
However, there is one issue that remains no matter who controls the House: the section 232 tariffs on aluminum and steel.
While MacNaughton said he鈥檚 鈥渉opeful鈥� the Trump administration will lift the tariffs, he wouldn鈥檛 provide a timeline for when they might be removed.
鈥淚 hope it鈥檚 not too far in the future because there are negative implications in Canada, obviously, that we want to see alleviated and I think the Americans are starting to feel it too,鈥� he said.
