Trump, Trudeau raise NAFTA brinkmanship, muse about walking away

Vicente Fox the former president of Mexico said that Donald Trump is 'not a responsible president.'

Vicente Fox the former president of Mexico said that Donald Trump is 'not a responsible president.'

Any deal with Canada would be "totally on our terms", the Toronto Star quoted Trump as saying in an off-the-record aside during an interview with Bloomberg News.

But for Canada there is no urgency, Leblond said.

Now, I could be misreading it and it may all blow up but I think a deal will be made and USD/CAD is vulnerable on the downside.

Freeland studiously avoided talking about the remarks all day, never once mentioning the president by name during her multiple media appearances, including a long-awaited news conference at the Canadian embassy.

Officials for both sides are scheduled to meet in Washington on Wednesday in a bid to settle some major differences.

The last main obstacle to a trilateral deal is a dispute resolution mechanism from the 1994 pact that Canada insists on keeping and the United States wants nixed. "I think Canada, in sort of the belt and suspenders theory of protection against trade disputes, would like to still have it, so they'll be pushing for it".

"Oh well, just more dishonest reporting".

There is little popular support in Canada for making concessions to Donald Trump on trade.

President Donald Trump may be insisting that the USA will be "better off" without a North American free trade deal that includes Canada, but American unions do not agree-and neither does the tech industry. The talks are scheduled to resume Wednesday in Washington.

Trudeau insisted that cultural exemptions remain a red line for the Canadian negotiating team and left the door open for tweaks to Canada's supply managed agriculture systems - a known irritant with U.S. President Donald Trump. "We'll see, and that depends on the kinds of negotiations we have", he said. This week those meetings continued at all levels. "Our officials are continuing to work toward agreement".

Strawberry, pepper and tomato farmers, who've sparred with their Mexican counterparts over winter imports for years, argued that the deal does little or nothing to stop Mexican farmers from flooding the USA market with below-cost produce.

Could dairy market access be the "bargaining chip" Canada needs to lock in new NAFTA deal?

But, by the end of the day, both sides expressed optimism heading into next week.

"It just makes the United States look like a less reliable partner", he says.

Veuger also notes that Canada is deepening its trade relationship with Beijing in part by expanding its oil and gas exports to China. The Impala is built at the General Motors plant in Oshawa, Ont.

Prime Minister Justin Trudeau in Surrey, B.C., Tuesday, Sept. 4.

No amount of public assurances from the foreign affairs minister about returning to the table with U.S.

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

Canada and the USA remain far apart on several issues including dairy, culture and the Chapter 19 dispute resolution mechanism.

NAFTA's Chapter 19 allows companies who feel wronged by anti-dumping, or countervailing duties, to have their issues settled by independent panels of experts from the countries caught in the dispute.

Lawrence Herman, a former Canadian diplomat who practices global trade law, said in an interview that although things have changed "mightily" since the original deal of the 1980s, the cultural exemption "is critical for Canada" in order to protect Canadian broadcasting, publishing, rules on Canadian content, and support for Canadian performing actors and artists in the recording industry.

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