Canada trade talks restart, tackle 'final' issues

Will Trump's NAFTA Deal Benefit Automakers

Trump's frustration spilled into the open over the holiday weekend as he railed against Canada on Twitter - as well as its many supporters in both political parties.

Canadian Prime Minister Justin Trudeau pivoted during high-stakes negotiations on the North American Free Trade Agreement this week; saying he can't sign-on to any deal that doesn't protect Canada's "culture" and history.

In addition, news is awaited from US-Canada talks on a revamped NAFTA while financial turmoil in Argentina and Turkey remains a worry, as do figures released Thursday showing an unexpected fall in German industrial orders in July. "Canada's the main trading partner for many states, quite a bit of our economic fortunes are entwined with Canada".

This week's new round of U.S. China has already said it will retaliate.

"There is no political necessity to keep Canada in the new NAFTA deal", Trump tweeted Saturday. Trump had hoped unions would lean on Democrats to back his approach.

The prime minister also said he has no plans to meet with Trump directly in Washington while NAFTA talks continue.

At the same time, Trump needs a win on trade ahead of the USA midterm elections in November that will test the president's ability to keep control of Congress.

Congress must approve any rewrite of the deal and could refuse to endorse an agreement that excludes Canada.

Trump has threatened to push ahead with a bilateral deal with Mexico, effectively killing the nearly 25-year-old three-country NAFTA pact, which covers $1.2 trillion in trade.

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And now even First Lady Melania Trump has issued a response. "The Vice President, that was my first thought", she added. Trump's more misguided impulses until he is out of office". "Americans should know there are adults in the room".

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Both Canadian and US negotiators insist they have been making progress with talks due to resume Wednesday.

The US and Canada have been unable to agree on several issues, including barriers that Ottawa places on the import of dairy, Canadian rules on movies, books and other media, and on the mechanism to settle trade disputes, The New York Times has reported, quoting sources.

Another area of disagreement is the so-called Chapter 19 of NAFTA, a mechanism for dispute resolution that allows the signatory countries to challenge one another's anti-dumping and countervailing duty decisions before a committee that has members from each country that is part of the dispute.

"On balance, a shift to a faster pace of rate hikes seems more likely than any kind of pause", said Adam Button, a currency analyst at ForexLive. -Canada pact that served as a precursor to NAFTA as well as the early 1990s NAFTA negotiations. But if American lawmakers insist that Trump include his northern neighbour, USA negotiators may feel the need to make a deal with Ottawa.

Talks with Canada aimed at bringing the top USA trading partner into the tentative deal struck with Mexico broke off Friday without success, but the parties agreed to continue talks this week.

The existing North American Free Trade Agreement between the U.S., Mexico, and Canada includes a cultural exemption clause, which gives the NAFTA countries special rights to put in place protecting cultural goods and services. Congress, meanwhile, has met the deal with some skepticism.

But he now worries that the fight over NAFTA's future could set back the hard-won political gains of the pact and prompt both Canada and Mexico to look increasingly beyond a less-reliable U.S. to build other global partnerships.

He reiterated his views again at the White House on Wednesday saying that Canada and "other countries have been taking advantage of the United States for many years".

"If we don't make a fair deal for the USA after decades of abuse, Canada will be out", he wrote, adding: "Congress should not interfere".

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