On Friday, Trump informed Congress of his intention to sign a bilateral trade deal with Mexico, but it could be hard to win approval from Congress unless Canada is also included, with support from Democrats needed to pass a purely bilateral deal.
On Monday, Trump and Mexican President Enrique Pena Nieto announced an agreement with Mexico to revise key parts of NAFTA - and both leaders expressed hope that Canada might negotiate to revise bilateral issues with both countries in order to conclude a trilateral negotiation by the end of the week. "Congress should not interfere w/ these negotiations or I will simply terminate Nafta entirely & we will be far better off ..."
Trump will need congressional approval to replace or change the details of NAFTA, the 1994 trade pact crafted by then-President Bill Clinton between Mexico, the US and Canada. The U.S. wants concessions on Canada's protected dairy market and Canada is prepared to offer some, two officials said. "The U.S. lost thousands of businesses and millions of jobs", President Trump wrote.
In a press conference Friday afternoon, Freeland said Canada and the US were working hard to reach a compromise and that the two countries "now understand each other's position very well".
The withdrawal process would require Trump to give Mexico and Canada 6 months' notice of his intent to leave the pact. They agreed to resume talks on Wednesday. According to a study on the deal effects back in 2013, NAFTA was directly responsible for raising the U.S. trade deficit with Mexico from $17 billion to $177 billion, and cost the United States over 850,000 jobs.
"There is no political necessity to keep Canada in the new NAFTA deal", the president wrote on Twitter.More news: Wall St mixed as US-Canada trade talks end
Trump previously set a deadline for Friday to reach the trilateral deal.
Trump has repeatedly denounced NAFTA as "one of the worst trade deals ever made", language he repeated on Saturday.
Mexico's Economy Minister Ildefonso Guajardo said he expected to rejoin his USA and Canadian counterparts for trilateral talks. Dispute settlement, Canada's cultural exemption and access to Canada's dairy market continue to be obstacles to a deal.
Also nettlesome is a provision in the U.S. -Mexico deal that shields U.S. makers of biologics - ultra-expensive drugs produced in living cells - from generic competition for 10 years instead of the eight Canada is willing to live with: The Canadians fear the protection will drive up drug prices and make their government health care system more costly. "We know that a win-win, win, agreement is within reach and that's what we're working towards".
Continetti's comment came during a discussion of trade policy and a recently renegotiated trade agreement with Mexico.
The tool has undoubtedly helped Canadian industry, especially during the repeated episodes where the USA imposed duties on imported softwood lumber, said Toronto-based trade lawyer Riyaz Dattu. The governor believes the real, long term solution to these issues is to reduce our regulatory and tax burden in order to better compete with the global market and employ all tools at our disposal to make sure we're protecting the interests of the USA economy.