Trudeau indicates he will not bend on key NAFTA demands at talks

Trudeau indicates he will not bend on key NAFTA demands at talks

Trudeau indicates he will not bend on key NAFTA demands at talks

The two sides still have to resolve differences on three key issues: dairy, culture and the Chapter 19 dispute resolution mechanism.

President Trump on Wednesday said the "intense" negotiations over a new North American Free Trade Agreement (NAFTA) should result in Canada treating the USA fairly on trade.

Levy of the Chicago Council says there are already signs that Mexico and Canada are taking steps to diversify their trade and broader economic relations beyond a less-predictable US.

But despite the public optimism, negotiators face a tough task ahead.

Trump hinted there might be progress towards a deal with Canada.

Canada and the U.S. need to present an agreed-upon text to the U.S. Congress by October 1 in order to join the deal the Trump administration has signed with Mexico.

The talks to remake NAFTA resumed after hitting an impasse last week over 's high dairy tariffs and USA moves to eliminate a dispute resolution system known as Chapter 19 that potentially favors Ottawa.

Commercial trucks exit the highway for the Bridge to Canada, in Detroit, Michigan U.S. August 30, 2018.

Canada is insisting on preserving a dispute-review procedure that the United States and Mexico have agreed to eliminate.

He again called NAFTA a "foolish" and "stupid" trade deal that he was moving to fix.

But Trudeau is also digging in and vowing that Canada won't be pressured into a deal.

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"I think that it's not necessarily a disaster", she said. In bilateral talks with the U.S., Mexico successfully sidestepped the sunset clause, although their agreement includes a "review" every six years, with the spectre of termination if problems can't be resolved. "We'll see, and that depends on the kinds of negotiations we have", he said.

As has always been the case, Canada has major concerns with at least three elements of the U.S.

"If it doesn't work out that is going to be fine for our country".

"We really are confident, as we have been from the outset, that a deal which is good for Canada, good for the United States and good for Mexico is possible", Freeland said, as she departed the office of the U.S. Trade Representative on her way to the Canadian Embassy. He told an Alberta radio station that Canada would insist on keeping a NAFTA provision for settling disputes "because that ensures that the rules are actually followed".

He can either push back against U.S. demands and risk being cut out of a continental trade deal, or give in and be accused by opposition parties of capitulating to Donald Trump.

However, she said the NAFTA reference gives the Bank of Canada options to possibly stay on hold next month, particularly if trade talks - and the outlooks for the economy and inflation - deteriorate.

If lawmakers stay mum on the threat of excluding Canada from Nafta, Trudeau could feel pressure to make concessions. It wouldn't be good for our identity.

"Our dairy farmers are facing dire economic conditions this year, and the Canadian pricing scheme and tariffs are curtailing much-needed markets for U.S. dairy products", said Jim Mulhern, president and CEO of the National Milk Producers Federation, earlier this year. However, like the sunset clause, a NAFTA dispute resolution process is only meaningful to Mexico (or Canada) if the U.S.is a good-faith participant.

The US business sector strongly prefers that NAFTA remain a trilateral agreement.

Chapter 19 allows NAFTA partners to evaluate the fairness of extra taxes placed on products (known as as anti-dumping or countervailing duties) by domestic agencies including such things as the U.S. Department of Commerce, the International Trade Commission (ITC), the Canadian Border Services Agency and the Canadian International Trade Tribunal.

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