The fifth round of NAFTA talks is likely to be focussed on details where agreement can be reached, rather than solving the big areas of intransigence including dispute settlement, rules of origin and the sunset clause. Unfortunately more complications continue to emerge.

The latest is Canada’s appeal to the NAFTA dispute panel regarding U.S. lumber tariffs. Exporters had been optimistic that a deal could be struck – lumber imports climbed 18% in the past quarter sequentially. In agriculture Canada will also likely retain its stance on protecting its dairy industry, especially afte...