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'Record pace': Canada to host NAFTA Round 3 in Ottawa later this month

After an intense round of talks in Mexico, NAFTA negotiations are set to advance to a third round in Ottawa Sept. 23-27.

Negotiations expected to intensify between Canada, U.S. and Mexico following first two rounds of talks

Foreign Affairs Minister Chrystia Freeland arrives at the site of the second round of NAFTA talks in Mexico City Monday. Trade talks between Canada, the U.S. and Mexico will advance to a third round in Ottawa later this month. (Edgard Garrido/Reuters)

Canada, the U.S. and Mexico closed off an intense round of North American Free Trade Agreementtalks today, promising toadvance negotiations at a third session in Ottawa later this month.

The next session will take place Sept. 23-27, when serious horse-trading is expected to begin, according to an official close to the talks who spoke on condition of anonymity.

Speaking after five days of negotiations wrapped up in Mexico City, Foreign Affairs Minister ChrystiaFreelandsaid ongoing discussions will focus on bolstering what works and improving what doesn't to work towards a deal that iswin-win-win.

"Canada, the U.S. and Mexico all wholeheartedly share the goal of reaching a mutually beneficial agreement," she said.

U.S. Trade Representative Robert Lighthizer said talks are moving at a "record pace," and that two dozen chapters have been tabled and discussed.

While the goal is to support robust economic growth in all countries, he underscoredAmerica'sobjective of improving parts of the current NAFTAthathave bled jobs in some sectors such as manufacturing.

"We must have a trade agreement that benefits all Americans, not just some at the expense of others," he said.

Insiders have said the second round of discussionsin Mexico City broached a wide range of issues, from supply management and auto-parts rules to government procurement, "Buy American" rulesand intellectual property.

Mexican Secretary of the Economy Ildefonso Guajardo Villarreal echoed hopes for a pact that would be a "victory" for all three countries.

Continental job creation

"In the process I recognize that we have the responsibility to translate our negotiations into a final result that will imply more jobs in North America, jobs that are well-paid jobs, and to strengthen principles in this continent," he said.

Villarreal and Freelandboth expressed sympathy for the victims of Hurricane Harvey, and said mutual assistance in times of crisis shows the solid relations between the three countries. Freelandcalled the response to the disaster by the U.S. "truly impressive."

Professional visas a sticking point

One of the early sticking points in discussions wasaround professional visas, which is a priorityfor Canada and for businesses that struggle to send staff across both sides of theborder.

NAFTA's visa list is outdated and doesn't include modern digital jobs, but the U.S. has pushed off the conversation because it wades in to the country's sensitiveimmigration politics.

Canada is also pushing for improved labour and environmental provisions asa top priority for a new NAFTA.

Canada and the U.S. both want an environment agreement pulled into the main NAFTA papers rather than existing as a side deal. They also want provisions to preventNAFTA countries from loosening environmental rules as a way to attract investment.

Differing views on climate change

Canada and the U.S. differ on climate change.

The U.S. is in the process of withdrawing from the the Paris accord on climate change, and U.S. President DonaldTrump has previously referred to climate change as a "hoax."

He has also started unravellingpolicies offormer president BarackObama's administration, including fossil fuel production restrictions which Trumpsays have hurt the U.S. economy.

Canada wants a modernizedNAFTA to reference climate change and make measures to help combat it a priority.

U.S. trade representative Robert Lighthizer, left, Foreign Affairs Minister Chrystia Freeland, centre, and Mexico's secretary of economy Ildefonso Guajardo Villarreal wrapped up the second round of NAFTA renegotiations in Mexico City today. (Aaron P. Bernstein/Reuters photos)

With files from Katie Simpson and The Canadian Press