Slow start to fifth round of NAFTA talks in Mexico City

NAFTA talks are off to a slow start in Mexico City, where the fifth round of discussions are underway.

A source with direct knowledge of the talks tells CBC News about a dozen different topics have come up so far, with little movement following the first full day of discussions.

The source pointed outthat, so far, there have been no fireworks behind the scenes.

That's a change in tone from the last round in Washington, where American negotiators tabled five controversial demands that Canada would not support. Mexico has also shown similar resistance to some of the demands.

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The so-called "poison pill" proposals include introducing a sunset clause, boosting made-in-America provisions in the auto sector, killing Canada's supply management system for dairy, restricting access to procurement contracts with the U.S. government, and dismantling the Chapter 19 dispute resolution process.

Procurement discussed on 1st day

The source said procurement was discussed on the first day of talks, and that the U.S. is showing no flexibility on its position, which is reported to be that Canada and Mexico's access should be on a "dollar-for-dollar" basis.

Canada's Foreign Affairs Minister Chrystia Freelandhas publicly complained about the American demands on procurement, saying the proposals would give Canadian and Mexican companies less access to U.S. contracts than companies in Bahrain.

Mexico is also using this round to resist accepting changes to labour standards, the source said.

A big point of contention for Canada and the U.S. is the lack of strong labour standards in Mexico, which allows workers there to be paid a fraction of what they would earn elsewhere.

The Americans are seeking dramatic improvements on this front, in the hopes of reducing its trade deficit with Mexico.

Negotiators are also tackling rules of origin, with the source saying time has been set aside every day to discuss the topic.

However, the most controversial aspect of this issue, American proposals to boost the overall North American content requirements from 62.5 per centto 85 per cent in the auto sector,are not expected to come up this round.

The source says negotiators will be examining the frameworks that regulate other industries.

This round of talks will wrap up on Tuesday.

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