Former prime minister Brian Mulroney calls on U.S. to preserve NAFTA

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Former prime minister Brian Mulroney is calling on the United States to preserve NAFTA, expand free trade and fulfill its traditional role as a leader of the international economic order – or risk being left behind.

In a passionate speech before a key U.S. Senate committee on Tuesday, Mr. Mulroney laid out the case in favour of continental economic integration – the cornerstone of his political legacy – arguing that the North American free-trade agreement has brought enormous economic benefits to all three countries. He also quoted former president Ronald Reagan to send a blunt message to the current one, Donald Trump: "protectionism is destructionism."

"With an unemployment rate of 4.1 per cent, the lowest of any nation in the industrialized world, it is becoming increasingly difficult to seriously argue that the United States has done poorly with its international trade agreements that create such vast employment opportunities at home and across North America," Mr. Mulroney told the committee on foreign relations, just hours before the President was set to deliver his State of the Union speech.

The former prime minister's testimony comes at a crucial time in the renegotiation of NAFTA initiated by Mr. Trump. A day earlier, the three sides wrapped up a round of talks in Montreal, where Canada tried to break the logjam over Mr. Trump's most protectionist demands. Mexico is also trying to fight back against Trump's protectionist push. While the United States indicated it would keep negotiating, it largely dismissed Ottawa's proposal to resolve a key sticking point on vehicle-content requirements in the free-trade zone.

The U.S. Congress will be key to either ratifying an overhauled NAFTA or restraining Mr. Trump if he tries to pull his country out of the deal. Members of the U.S. Senate foreign relations committee are almost unanimous in their support of NAFTA – except for Oregon Democratic Senator Jeff Merkley, who has criticized the loss of jobs to Mexico. Tuesday's hearing sends a powerful signal that Mr. Trump cannot easily tear up NAFTA without Senate approval.

Thirty five Republican Senators – including Majority Leader Mitch McConnell – sent an open letter Tuesday to Mr. Trump affirming their support for NAFTA and urging him to embrace it as part of his pro-business agenda.

The President's tone on NAFTA has softened in recent weeks amid a barrage of lobbying by U.S. business interests, many of them encouraged by the Canadian government, and interventions by pro-trade GOP legislators. The senators urged Mr. Trump, who has threatened to tear up NAFTA, to instead modernize the deal to open markets even further.

"We write today to reaffirm the benefits of the North American Free Trade Agreement (NAFTA) and congratulate you on efforts to modernize the agreement and put America first. You have the opportunity to unleash the American economy like no President has done before and fuel historic growth," the senators wrote. "The next step to advance the economy requires that we keep NAFTA in place, but modernize it to better reflect our 21st century economy. We look forward to working with you and your Administration to make that modernization a reality and bring Americans even greater economic success."

The hearing was an opportunity for Mr. Mulroney, who testified alongside former U.S. ambassador to Mexico Earl Anthony Wayne and former Mexican economy minister Jaime Serra, to rally congressional backing for the deal.

Mr. Mulroney himself is in an unusual position: The architect of NAFTA and the earlier Canada-U.S. free-trade agreement, he is also on friendly terms with Mr. Trump, famously serenading the President last year during a charity fundraiser at Mar-a-Lago, Mr. Trump's hotel in Palm Beach, Fla., where the Mulroneys also have a residence.

And in his testimony, Mr. Mulroney was careful not to criticize Mr. Trump directly, even as he took square aim at the protectionist ideals that have animated much of his presidency. Recalling his relationships with former presidents Mr. Reagan, George H.W. Bush and Bill Clinton, Mr. Mulroney said all three understood trade deals were about more than mere transactions.

"They understood that such trade arrangements are a vital constituent part of an enlightened foreign policy, not isolated variables to be picked apart and analyzed on a profit and loss basis," he said.

He also warned against the destructive effects of protectionism.

"When fear and anger fuel public debate, history teaches us that protectionism impulses can easily become a convenient handmaiden," he said.

Mr. Mulroney's message went over well with the senators. While some expressed specific criticisms of NAFTA, particularly on the lack of enforceable labour standards, all appeared to agree that it had to be preserved.

"I believe very strongly that we should stay in NAFTA, and we should do everything we can to make it work, to make it strong," said Johnny Isakson, a Georgia Republican. "I'm going to continue to vote that way."

Under questioning from the committee, Mr. Mulroney said he was confident Canada – and the rest of the world – would continue advancing on the free-trade front. And he delivered a stark warning that the United States would "lose" if it continued to hold back.

"I have no doubt whatsoever that the government of Canada made the right decision by signing on to the TPP, as they negotiated a free-trade agreement with Europe, as they're going to negotiate a free-trade agreement with, hopefully, Japan, India and ultimately China. This is the wave of the future," he said. "There is an expression in French which says it all: 'Les absents ont toujours tort.' Rough translation: 'If you take yourself out of the game, you're going to lose.' "

Mr. Serra said continental economic integration is so entrenched that the three countries aren't merely trading but increasingly producing things together.

"Once you scramble an egg, it's very difficult to unscramble it," he said.

With a report from Robert Fife