Agriculture has been waiting with anticipation, and some trepidation, for the North American Free Trade Agreement renegotiations to finally begin. Now that the negotiations are free to begin on August 16th, the next logical question is what happens next during the actual NAFTA renegotiations?
Darci Vetter was the lead agricultural trade negotiator for the Obama administration. She has firsthand experience in this situation as she was heavily involved in negotiating the Trans-Pacific Partnership that new president Donald Trump withdrew from. Vetter says the renegotiations are an opportunity to improve the landmark trade agreement, but there are serious pitfalls to watch out for.
“It’s an opportunity to update an agreement that’s been around for 25 years,” Vetter said, “but it’s also an opportunity, if not done carefully, to reopen the terms of trade between three countries that really rely on each other. I’m hoping that the three countries will focus on bringing an agreement that’s dated in some ways up to the standards we need in 2017.”
Vetter said negotiators need to keep in mind that the economies of three separate countries have really integrated themselves based on duty-free access for almost all products in each other’s markets. She doesn’t want the flow of trade interrupted.
Certain segments of NAFTA do need to be updated. She compares it to the recently abandoned Trans-Pacific Partnership. There are chapters in TPP that simply didn’t exist when NAFTA was signed over two decades ago. The digital economy is a big development that needs to be addressed in the renegotiations.
“Look at the digital economy and the importance of the free flow of data,” she noted, “making sure that goods sold over the internet can be easily exchanged between the countries and that people can do business across borders no matter where their brick-and-mortar locations may be. We didn’t have the internet and e-commerce back in the early 90’s.”
The way countries protect intellectual property is more robust than it was in the 90s. There are whole classes of products like pharmaceuticals and crops that just didn’t exist back then. Vetter says we may want to bring the standards for protecting intellectual property from any of the three countries up to today’s standards. She notes there are a lot of good foundations in the original agreement that America can build on to make it a more current agreement.
Here’s the complete conversation with Darci Vetter: