9/11 anniversary gives perspective to NAFTA impasse: Freeland

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The U.S. and Canada are trying to reach an agreement by the end of September that would complete a revamped three-nation deal with Mexico that Congress may consider next year.

The uncertainty over the fate of NAFTA, in light of a tentative U.S. -Mexico trade deal, has not gone away even as trade experts note that members of Congress, concerned about the trade ties between the two countries, may help ensure that a final deal includes Canada. It also wants to continue protections for its dairy industry and defend lumber exports to the United States, which have been hit with duties.

President Donald Trump warned Friday that he would impose 20-per-cent tariffs on auto imports from Canada if it does not agree to a "fair" deal, a move he said would bring "ruination" here.

"And one of the things that I think we are accomplishing in this agreement is a better deal for Canadian and USA workers in the auto sector".

One of the issues for Canada in the revised deal is the US effort to dump the Chapter 19 dispute resolution mechanism that hinders the United States from pursuing anti-dumping and anti-subsidy cases.

Meanwhile, despite the "several" issues still in dispute, there is strong will on the USA side, especially, to wrap up the talks by Friday, trade lawyer Dan Ujczo said Monday.

"The conversations over the weekend continued to be constructive and productive", she said. "Having said all of that, nothing is done until everything is done", Freeland told reporters.

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To the south, Trump's agriculture secretary suggested deeper concessions would be coming from the Canadians over Canada's system of managing supply and prices in the dairy sector.

"We recognize that there is a possibility of getting there by Friday, but it is only a possibility, because it will hinge on whether or not there is ultimately a good deal for Canada", he said at a news conference in northern Ontario on Wednesday. The official spoke on condition of anonymity due to the sensitivity of the negotiations.

"Many have seen this market over the last few decades, from an American point of view, as just being off the table", Reed said in an interview with Global's "The West Block" that aired Sunday morning.

But a leader of this country's main milk-producing lobby group said Monday his industry has given enough in previous trade deals and will not tolerate more concessions.

In 2016, after yielding greater market access under the European Union deal, Trudeau's government paid dairy farms and processors hundreds of millions of dollars to compensate and is expected to pay out again for the Pacific deal.

Trudeau, who over the past year has faced increasing criticism for backtracking on promises, ordering endless consultations on major topics and failing to fulfill many of his campaign promises, had taken a tougher stance against the United States in recent weeks. Under U.S. law, Trump must wait 90 days before signing the pact.

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