President-elect Donald Trump's transition team is advising Trump to fight for more favorable terms for the U.S. in the livestock section of the North American Free-Trade Agreement (NAFTA).
Perrin Beatty, president of the Canadian Chamber of Commerce, told the Daily Globe and Mail that all aspects of NAFTA are theoretically on the table for discussion and the Canadian government is seeking clarity for what the president-elect's goals are.
A transition team memo acquired by CNN outlines Trump's first 200 days in office plan. Renegotiating NAFTA is on the to-do list for day one. Investigations into the ramifications of withdrawing from NAFTA and the requirements to do so are also included the first day plan. NAFTA has been in effect since 1994.
Removal or renegotiation of NAFTA could address country-of-origin labeling (COOL), which has been a major issue between Canada and the U.S. While the World Trade Organization said COOL violated NAFTA and called for its removal, it had support in many parts of the United States. In 2015, a WTO panel calculated the annual damage to Canadian cattle, pig and hog producers to be $1 billion due to COOL. The added costs of COOL have also been problematic for American packers and producers.
Canadian Finance Minister Bill Morneau told a London audience, "We will work with the U.S., and this would go with any U.S. administration, in order to show the benefit of that relationship."
For more information on the Canadian viewpoint, click here.