Dr Richard Haass, an ex-White House envoy to the region, said he will not be drawn into controversy on individual matters as flag protesters organising a mass demonstration are being urged to think again.
"I'm not going to get involved with this or that pending political activity. I've got enough on my plate," Dr Haass said.
"There are mechanisms for dealing with these things, for existing things.
"I think there's an understanding that the current situation dealing with all the issues we've talked about with the past, with flags, with parading and marching is in certain ways inadequate or less than optimal."
Dr Haass said his focus was finding a way to improve the way those issues are dealt with and not on decisions on individual activities.
Dr Haass would not comment on the specific loyalist rally, planned for one of the busiest shopping days in the run-up to Christmas on Novermber 30, despite calls from Northern Ireland Secretary Theresa Villiers for protesters to think again.
The demonstrators are planning for 10,000 people to march, sparking fears of disruption which cost the local economy millions in similar flag disputes last year.
But Dr Haass said: "Just to be clear about my role here, I don't have operational responsibility for what happens in Northern Ireland now.
"I will not have operational responsibility for what will happen. What I have is a responsibility to work with political leadership, about trying to resolve some of the lingering divisive issues."
The diplomat insisted the purpose of the peace talks was to work on a "macro level" rather than a "micro level".
Dr Haass arrived in Belfast earlier this week for his second visit aimed at forging agreement on three of the most long-standing disputes facing the power-sharing administration at Stormont.
He said upon his arrival that he was optimistic that a mood for compromise is emerging and that he sensed people were ready to move on.