Canada PM safe for now as Trump attacks, but angry farmers loom

Canada PM safe for now as Trump attacks, but angry farmers loom

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.

He and other American politicians have long demanded Canada's system of domestic dairy protections either be abolished or heavily modified to give U.S. exports a bigger share.

Mulroney said Justin Trudeau phoned him last weekend to discuss the NAFTA situation and the two spoke for an hour.

"I think we understand there are certain issues on which we will need to compromise", one of the sources said when asked about increased dairy access for the USA industry. Lighthizer said on Monday Mexico had agreed to cut the mechanism but Canada wants to keep dispute resolution in NAFTA.

The talks are focused on US 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. "The average part that goes into the Pacifica in final assembly crosses the border six times", Dilkens said.

Speculation has been building in recent weeks that the Trump administration is in the midst of a pivot from picking trade fights with allies to focusing on confronting China.

His announcement came with an ultimatum for Canada - join the U.S. -Mexico pact or suffer the consequences of punishing American tariffs on the auto sector.

Donald Trump's visit to Ireland in November cancelled
President Donald Trump walks to Marine One while departing the White House in Washington, U.S., September 6, 2018. Politicians and activists in Ireland had indicated they would hold protests during Mr Trump's visit.

On Friday Freeland told reporters the 13-month-old NAFTA talks had entered a "very intense" phase of "continuous negotiations".

New chapters governing the digital economy and stronger intellectual property, labor and environmental standards could also work to the benefit of USA companies, possibly helping Trump to fulfill his campaign promise of creating more American jobs.

US officials say time is running out to agree on a text on which the current Congress can vote. U.S. President Donald Trump, who has said he is prepared to tear up NAFTA, has struck a bilateral trade deal with Mexico and threatened to push ahead without Canada.

Major stumbling blocks for Ottawa and Washington remain: an global system for resolving disputes, Canada's protected dairy industry and Canadian cultural subsidies.

Mulroney acknowledged U.S. Trade Representative Robert Lighthizer is on a short leash from the White House when it comes to what he can offer in the talks, but noted that Trump trusts Lighthizer a lot.

Trump has notified Congress he intends to sign the trade deal reached last week with Mexico by the end of November, and officials said the text would be published by around October 1. "I think there will be agreement on NAFTA based on the benefit to all three national economies". Eares are on the ground for United States and China developments but at the fore again was the NAFTA negotiations.

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