Trudeau stands firm on U.S. demands as NAFTA talks set to resume

Trudeau stands firm on U.S. demands as NAFTA talks set to resume

Trudeau stands firm on U.S. demands as NAFTA talks set to resume

The North American Free Trade Agreement (NAFTA) has become the latest deal to fall victim to U.S. President Donald Trump when he announced Monday that he would terminate the 24-year-old agreement that includes the U.S., Mexico and Canada. She and U.S. Trade Representative Robert Lighthizer had agreed to review progress early on August 30.

Trump lauded the new deal as landmark in with Mexico, and he made it clear the two countries will proceed with their pact, with or without Canada.

Michigan State University professor of economics Charles Ballard says a trade deal with Canada is essential to Michigan. -Mexican discussions, Canada's team is back in full force in the American capital for the first time since the spring and Freeland says the negotiators are intensively focused on finding new areas of compromise.

Foreign Affairs Minister Chrystia Freeland is in Washington for the latest round of negotiations, flanked by senior Canadian officials, including Prime Minister Justin Trudeau and his point-man on USA relations, Brian Clow.

"We believe this is a positive development for Canadian auto parts suppliers since the North American automotive industry will stay intact, and Mexican assembly plants will need to source parts from high-wage jurisdictions such as the USA and Canada", BMO Capital Markets analyst Peter Sklar wrote in a note to clients.

Canadian Foreign Minister Chrystia Freeland on Wednesday expressed optimism about ongoing trade talks with the White House, part of fast-moving negotiations in President Trump's push to rework the North American Trade Agreement.

Trudeau faces political pressure with elections due in a year, which could make him wary of being seen as capitulating to Trump, especially on dairy. The same tariffs were applied to Canada - the top foreign source of both metals to the US - and Trudeau's team will be looking for an exemption as part of any deal. Freeland's spokesman Adam Austen said in a statement Canada "will only sign a new NAFTA that is good for Canada and good for the middle class".

Trudeau has previously said he could not sign a deal that has an expiry date on it, but that was when the U.S.

The head of Saputo Inc., Canada's largest dairy processor, told The Canadian Press in June that the NAFTA dairy impasse with Trump can be resolved if Canada ends Class 7. "This is not part of the negotiating strategy or anything", the official said.

If talks with Canada are not wrapped up by Friday, Trump plans to notify Congress that he intends to sign a deal with Mexico, but would be open to Canada joining, Lighthizer told reporters on Monday.

But Canada is a dominant exporter of crude oil to the United States: It accounts for 47 percent of the barrels imported to the United States, according to the U.S. Census Bureau.

Two key issues for the US and Canada are dairy and anti-dumping dispute panels.

But Washington backed away from a strenuously-opposed provision to require the three nations to renegotiate the trade pact after five years.

According to USA officials, the deal between the US and Mexico would be created to last for 16 years.

Trump and Republicans in the U.S. Congress up for re-election in November want to ensure farmers and other voters whose jobs depend on trade with Canada and Mexico that the deal is sealed. "Because Canada has been very rough on our farmers", Trump said. She said she was "encouraged" and "optimistic" upon her departure from the morning meeting, but she did not provide details.

Pat Toomey released a statement Tuesday regarding President Donald Trump's announcement the USA and Mexico had agreed to change key parts of NAFTA.

The Prime Minister said that ending "supply management" is not on the table and unacceptable for Canada.

Trump said he still could put tariffs on Canadian-made cars if Canada did not join its neighbors and warned he expected concessions on Canada's dairy protections. Instead, the agreement with Mexico extends NAFTA for 16 years but with a review every six years.

On a brighter side, Mexico as agreed to make concession on its auto industry.

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