Canada's Freeland says US NAFTA talks still constructive, productive

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The talks are focused on USA demands to scrap the so-called Chapter-19 dispute resolution mechanism in NAFTA, overturn some of Canada's current "carve-out" of cultural industries from free-trade rules and loosen protections under the dairy sector's supply management system.

Wednesday was the first day that negotiations between the two countries resumed after four intensive days of talks last week ended without a deal on Friday after the mood soured.

Canada's Foreign Minister Chrystia Freeland after a meeting with Mexico's President-elect Andres Manuel Lopez Obrador in Mexico City, Mexico July 25, 2018.

Officials say the main sticking points are Canada's dairy quota regime, Ottawa's desire to keep a dispute-resolution mechanism, and Canadian media laws that favour (921.23 billion pounds) domestically produced content.

"There is not going to be a deal - period - unless there is a compromise in that area because that is what he campaigned on and it's stuck to him and he's stuck with it", Mulroney said.

Trudeau, whose federal Liberal government relies on support from Ontario and Quebec where most dairy farmers live, has said he will defend Canada's dairy industry, without giving details.

Welles Orr, who was assistant US trade representative for congressional affairs in the George H.W. Bush administration, said the prospects appear good for a deal with Canada in coming weeks, although a new NAFTA or its replacement would likely not get through Congress until next year at the soonest. Class 7 has to go.

Trump is particularly incensed by Canadian tariffs imposed on dairy products, which he says are "killing" United States farmers, especially in Wisconsin.

"He has great confidence and trust in Lighthizer". What trade scholars like me know is that Trump does not have the upper hand in these negotiations.

What should Canada do at the NAFTA negotiating table?

"At the end of the day, neighbors help each other when they need help".

What Trump hesitates to acknowledge is the interdependence between the USA and Canadian economies.

The independent panel ruled that about $1.21 billion in such paper imports from Canada were not harming US producers.

U.S. President Donald Trump has set a Friday deadline for the three countries to reach an agreement, which would allow outgoing Mexican President Enrique Pena Nieto to sign it before he leaves office at the end of November.

As U.S. and Canadian trade officials worked last week toward a so-far elusive deal to update the North American Free Trade Agreement, Joe Graves was concerned about the auto plant where he's worked for 30 years.

"To me, a lot of that is consistent with my suspicion that the US doesn't really want to get a deal [or] at least the [Trump] administration doesn't", he said, citing the leaked off-the-record comments Mr. Trump gave Bloomberg in late August when he said he was refusing to compromise with Canada and that any deal with Canada would be "totally on our terms".

Trump is threatening to move ahead on a deal without Canada. "Possibly they'll be meeting all night long", Freeland said.

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