May 17 Deadline Looms for NAFTA Approval

A firm agreement on an updated NAFTA would be needed by May 17 to ensure that the current Congress has time to vote on it, says U.S. Speaker of the House Paul Ryan.

Bloomberg News reports that Ryan is referring to the timeline of protocols followed by the U.S. Trade Promotion Authority. The timeline would be triggered when Canadian, Mexican and American negotiators reach a deal to update the North American Free Trade Agreement.

If that happens, the TPA process dictates that the Trump administration would next send a letter to Congress giving 90 days notice of its intent to sign the accord. The full text of the agreement would be published 30 days later, thereby giving Congress a document to debate and vote to approve.

Ryan indicated in a speech on Thursday that he considers an agreement by the May 17 deadline highly unlikely. If so, he says, the current Congress won’t have enough time to vote on the pact. U.S. Trade Representative Robert Lighthizer has noted that turning over that task to the new Congress in January could significantly change the likelihood of passage.

But trade experts tell Bloomberg that deadlines for treaty approvals are “murky.” They say a deal could still be passed in December if an agreement isn’t reached until June.

If the White House opts to pull out of NAFTA instead, as President Donald Trump has threatened to do, it must give six months notice.