CHRETIEN MAY BLOCK TRADE ACCORD AS NEGOTIATED

CHRETIEN MAY BLOCK TRADE ACCORD AS NEGOTIATED

Canadian Prime Minister-designate Jean Chretien said Wednesday he may not enact the North American free-trade agreement with the United States and Mexico.

Mr. Chretien, who has pledged to renegotiate the Nafta deal, said he may refuse to proclaim the ratifying legislation passed by Parliament in May.A 59-year-old Quebec lawyer, he won a landslide victory in Monday's national elections.

On Nafta, he said that under the Canadian system, a law does not go into effect until it is officially proclaimed, which has not yet been done. He refused to say if he would withhold the proclamation until he received concessions from the United States.

Mr. Chretien reiterated his Liberal Party's position on the original free- trade agreement between Canada and United States, which went into effect Jan. 1, 1989, and the new Nafta deal scheduled to go into effect Jan. 1, 1994, if passed by the U.S. Congress.

"In our program, we were asking for changes to Nafta," he said. "Two have been dealt with, labor and environment."

He said three more are left - exact definitions of subsidies for goods that are traded and dumping of products at low prices, and changes in the provisions concerning energy to protect Canadian reserves.

The original free-trade agreement, which will be superseded by Nafta, obligates the United States to negotiate a code with Canada on dumping and subsidies within the first seven years, Mr. Chretien said.

He confirmed he will meet with President Clinton in Seattle Nov. 19.

Mr. Chretien also said he will terminate a C$4.8 billion (US$3.6 billion) helicopter contract signed by the Conservative government with an Anglo- Italian consortium, and stop a deal signed by the Conservatives in the waning days of the campaign to privatize terminal operations at Pearson International Airport in Toronto, Canada's largest.