By William Mauldin and Siobhan Hughes 

WASHINGTON -- The Trump administration is pushing hard to finish talks on the North American Free Trade Agreement over the next two weeks and is considering bare-knuckle tactics to get Congress to approve a new deal.

President Donald Trump has repeatedly signaled his willingness to withdraw from Nafta entirely if he doesn't get a renegotiated deal he deems more favorable to American workers.

The administration used the same strategy to bring Canada and Mexico to the table. But some in Congress -- especially members of the GOP -- say they are prepared to resist the approach if it is turned on them.

"I have advised them very unambiguously that would be a very bad strategy for the administration to pursue," said Sen. Pat Toomey (R., Pa.), who has been talking to White House officials.

Lawmakers have ultimate constitutional authority over tariffs as well as tools and levers to promote their own agenda and delay or derail unwanted policy from the executive branch.

Asked about the congressional strategy for Nafta on Monday, White House spokeswoman Sarah Sanders said, "Those conversations and negotiations are ongoing."

U.S. trade representative Robert Lighthizer met behind closed doors Friday with senior Canadian and Mexican officials, who said they would regroup Tuesday as part of a continuous round of intense negotiations, with lower-level officials working through the weekend.

"Basically there has been very good progress and we'll continue working nonstop," Mexican Economy Minister Ildefonso Guajardo said Friday after talks in Washington. "Our teams will continue working permanently."

Canadian Foreign Minister Chrystia Freeland said the talks "certainly are in a more intensive period of the negotiations, and we are making good progress."

The three countries are eager to complete an agreement in principle within two weeks to renew the 24-year-old pact, so that a final deal can be signed before the Mexican presidential election July 1 and before the window closes for consideration in Congress this year.

It isn't clear whether pressure from the Trump administration will work with Congress. For starters, some legal experts disagree over whether Mr. Trump -- or any president -- has the ability to completely withdraw from Nafta, which is the basis of his leverage over Congress. "They can give notice, but they can't actually withdraw without congressional action," said Mr. Toomey.

Mr. Lighthizer has called for tighter rules about how much North American content a car or auto part has to have to qualify for duty-free trade; changes to procurement rules to limit foreign firms' access to government contracts in the U.S.; a weakening of dispute-settlement provisions in Nafta; and other changes to promote U.S. agricultural and industrial interests.

The administration's urgency over Nafta is worrying U.S. lawmakers on both sides of the aisle.

Republicans are concerned Mr. Lighthizer will place a higher priority on the administration's "America first" proposals, which are largely unpopular with international businesses, over issues closer to businesses in their states.

GOP lawmakers have criticized Mr. Lighthizer's efforts to scale back or completely get rid of a Nafta provision known as investor-state dispute settlement, which lets companies challenge foreign governments and win compensation when they are mistreated abroad. Sen. Orrin Hatch (R., Utah), the chairman of the Senate's trade committee, asked Mr. Lighthizer a week ago to pursue stronger copyright protections in Nafta.

On the Democratic side, lawmakers and their supporters among labor unions agree with the Trump administration's approach to trade, but some are worried Mr. Lighthizer will step back from those priorities to get a quick deal.

"As NAFTA is renegotiated over the next couple of weeks, I want to remind President Trump that the deal should eliminate its outsourcing incentives and add strong labor and environmental provisions," Rep. Tim Ryan (D., Ohio) said last week in a message on Twitter.

Ninety-seven House Democrats wrote a letter to Mr. Lighthizer last week to demand higher labor standards in Nafta and Mexican law, a shift that U.S. workers hope will increase wages south of the border and deter outsourcing.

Officials involved in the talks want to wrap up a deal before the Mexican presidential election, since a president-elect from a different party would likely want to put a new stamp on the deal before it is ratified. Canadian officials have softened their criticism of the Trump administration's provisions as Mr. Lighthizer has shown more flexibility on the pact's auto rules and all three countries have agree to speed up the talks on the accelerated timeline.

Administration supporters worry that the congressional midterm election could lead to a big loss in Republican votes -- weakening Mr. Trump's ability to get a new version passed.

Under 2015 trade legislation known as fast track, Mr. Trump is entitled to a yes-or-no vote on trade agreements -- without procedural delays or amendments in Congress -- provided the administration follows set rules in negotiating and signing a deal.

Under the next major step in fast track, also known as trade promotion authority, the administration would notify Congress of its intent to sign a trade agreement in 90 days. Sixty days before the countries sign the deal, the full text of the agreement has to be published, so an "agreement in principle" wouldn't be sufficient. Staffers are discussing the possibility that the administration will send the notification very soon, according to one congressional aide.

Later, when Congress receives the legislation written to implement the new Nafta, it has 90 days when lawmakers are in session to vote for or against it.

To maximize the chances of a congressional vote this year, officials say the complicated set of deadlines means the U.S. wants to wrap up basic negotiations with Canada in Mexico in two weeks, with details and a final text of the agreement coming shortly afterward.

There is an "urgency to get something to Congress by mid-December," said Lance Jungmeyer, the president of the Fresh Produce Association of the Americas, after a meeting last week with Mr. Lighthizer that also included Sen. Jeff Flake (R., Ariz.) and other Arizona business people.

--Paul Vieira contributed to this article.

Write to William Mauldin at william.mauldin@wsj.com and Siobhan Hughes at siobhan.hughes@wsj.com

 

(END) Dow Jones Newswires

April 23, 2018 15:40 ET (19:40 GMT)

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