Canada deal in doubt; focus shifts to Japan trade talks

Canadian Prime Minister, Justin Trudeau, speaks during a news conference at U.N. headquarters during the General Assembly of the United Nations in Manhattan, New York, U.S., September 26, 2018.

Chantal Gagnon, a spokeswoman for Prime Minister Trudeau, also rejected the claim that the Canadian leader had requested a one-on-one meeting, stating: "No meeting was requested".

Cameron Ahmad, Trudeau's spokesperson, told several reporters that "no meeting was requested".

Mexico has already signed on to a new deal to replace the North American Free Trade Agreement (NAFTA), but the United States leader is upset over Canada's tariffs on the U.S., and is considering implementing a new tax on Canadian-made cars. She said she frequently discusses trade issues with Freeland as both Canada and the European Union work on separate deals with the U.S.

Trump then reiterated his threat to slap punitive tariffs on Canadian auto imports to the USA, a tactic experts on both sides of the border have warned would devastate the industry. "(Trudeau's) tariffs are too high and he doesn't seem to want to move". But Trudeau refused to answer whether he feels the president lied.

Canada is now continuing NAFTA negotiations with the US. Trump said he had.

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"I still think there is a reasonable probability of a deal this weekend", said Greg Anderson, global head of foreign exchange strategy at BMO Capital Markets. He said he would impose tariffs on all of Canada's automotive and auto part imports if they don't agree to unrelated changes to NAFTA. "We're going to tax the cars that come in", he said. The U.S. president stayed seated as he extended his hand for a cursory handshake.

The U.S. and Canada are under pressure to reach a deal by the end of the month, when Lighthizer must make public the full text of the agreement with Mexico. "But it will probably or possibly be just USM", he said suggesting it will likely only include the USA and Mexico.

Trump and Trudeau share a rocky history. Officials in the PMO insisted no such request had been made, given already close contact with the White House.

The NAFTA impasse can't be helping matters, either.

The administration is looking to inform Congress of a plan for a new North American trade agreement by Sunday, which would allow Mexican President Enrique Peña Nieto to sign it on November 30, his last day in office. "Canada would like to be in the agreement".

"We'll see where it goes, but so far it's been tough", he said. The president said it would be called "USM", for the USA and Mexico, instead of "USMC", and offered blunt criticism of the Canadian team engaged in the talks. "It's been long and exhausting, but I think we've narrowed the gap".

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