North America leaders meet with trade threats, Brexit on their minds

North America leaders meet with trade threats, Brexit on their minds

© Chris Wattie / Reuters

OTTAWA (Reuters) - U.S. President Barack Obama arrived in Ottawa on Wednesday to meet with his North American counterparts and all three leaders are set to push back against anti-free-trade sentiment that has shifted political debate in the United States and Europe.

Obama, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto, in their "Three Amigos" summit focused on the North American Free Trade Agreement (NAFTA), are expected to stress the value of free trade as voters increasingly doubt the benefits of globalization.

U.S. Republican presidential candidate Donald Trump has vowed to renegotiate or scrap the 22-year-old trade agreement if he wins power in November's election, and the Ottawa summit could be the final harmonious one between the three countries if Trump wins the White House.

Trump says free trade has been disastrous, costing thousands of U.S. jobs and depressing wages.

Similar complaints were heard in Britain ahead of a surprise referendum vote last week to leave the European Union and its free trade area.

"We've seen around the world many examples of protectionism, of concern, of stepping away from trade agreements," Trudeau told reporters on Tuesday, stressing the need for more rather than less cooperation.

"Better partnerships are a path to prosperity and that's a compelling example that we want to showcase at a time where unfortunately people are prone to turning inwards, which will be at the cost of economic growth and their own success."

Pressed about Trump's remarks on NAFTA, a Canadian official said the three nations had generated almost 27 percent of the world's gross domestic product in 2015 while accounting for seven percent of the population.

"Canada believes NAFTA is in the best interest of our three countries and we are focused on deepening our trading relationship," said Alex Lawrence, a spokesman for Trade Minister Chrystia Freeland.

Trudeau, Obama and Pena Nieto will talk in Ottawa and are scheduled to hold a news conference at 3 p.m. (1900 GMT). The leaders usually meet about once a year.

"We anticipate that leaders will spend a significant time talking about trade; for example, how to facilitate trade by automating our borders," U.S. National Security Council official Mark Feierstein told reporters on Tuesday.

The trio will also discuss Britain's vote to leave the EU, which wiped more than $2 trillion off global equity markets and dealt a huge blow to the EU.

"The president will obviously want an opportunity to discuss ... how we may be able to coordinate our efforts to insulate ourselves ...," said Feierstein.

The three have pledged to produce 50 percent of their nations' electricity from clean energy by 2025.

The North American countries plan initiatives including cutting power waste by aligning 10 appliance efficiency standards or test procedures by 2019, the White House said on Wednesday.

Obama is due to address the Canadian Parliament at 5.25 p.m. (2125 GMT).

(Writing by David Ljunggren; Editing by James Dalgleish)

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