Trudeau says he's encouraged by what he calls NAFTA progress

Trudeau says he's encouraged by what he calls NAFTA progress

Mexico has already offered concessions to the USA, especially in terms of rules of origin. While Freeland has said Canada would only sign the agreement if it was good for her country, Trump has warned that he could proceed with an agreement with Mexico alone.

"You can hook them up", Trump said to his White House staff.

"I would be surprised if it was wrapped up this week", said Gary Hufbauer, a former USA government trade official and fellow at Washington's Peterson Institute of International Economics. "This Friday business is just Trump bullying, which he likes to do".

The United States and Mexico have reached a trade agreement that is more than a handshake deal but not quite a treaty. Trump has presented this as a bilateral deal and threatened Canada with vehicle tariffs.

"There are still a lot of questions left to be answered", said Peter MacKay, a former Canadian minister of justice, defense and foreign affairs who is now a partner at the law firm Baker McKenzie.

If talks with Canada are not wrapped up by the end of this week, Trump plans to notify Congress that he has reached a deal with Mexico, but would be open to negotiations with Canada, U.S. Trade Representative Robert Lighthizer told reporters.

The deal must be reviewed by Congress and can not be finalized until at least November. Nieto would gain a legacy achievement, Lopez Obrador the ability to blame any shortcomings in it on the previous regime. On its own, that would make Saturday the deadline for concluding things.

There is some urgency as the United States seems keen to have the issue resolved before the November midterm elections, and Pena Nieto wants to sign before handing the reins over to Lopez Obrador on December 1.

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However, legislators and former United States trade officials say the White House does not have the authority to replace NAFTA with a two-nation trade agreement, and must have the text of the treaty ready by September 30.

NAFTA is dead and the name is now banished and in its place we have the principles of a new US-Mexico trade agreement (USMTA), points out the research team at Rabobank. Magna International (MG.TO) saw a more muted response.

Congress has done so repeatedly over the years, he said. However, political experts have noted that Canada has wiggle room on opening the quotas and rulings surrounding products entering into the country which would be perceived as fairer to United States dairy businesses. "The text could shift, but not the core of concessions and undertakings".

Tuesday's meeting was the first time Freeland had met with her USA counterparts in Washington since May.

Freeland is expected to travel to Washington for talks Tuesday, spokesman Adam Austen said.

Canada's protected supply-managed dairy industry emerged as a major 11th-hour irritant as the Trudeau government returned Tuesday to what could be the final, pivotal round of talks to salvage the North American Free Trade Agreement. Focusing on Wisconsin dairy farmers, he has also complained of Canada's policy on ultrafiltered milk, a high-protein concentrate sometimes used to make cheese and yogurt.

Now, why would Canada's signature be needed on a pact that Trump proposed would no longer even be called the North American Free Trade Agreement? The new preliminary threshold on content to qualify for tariff-free access was "ambitious", the carmaker said. "I am not concerned right now for Canada's position", Bruce Heyman, a USA ambassador to Canada under Barack Obama, told BNN Bloomberg television.

Sklar couched that by noting this is a tentative agreement without reference to Canada.

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