Trump, Trudeau upbeat about NAFTA deal

A Friday deadline to agree in principle on a revised NAFTA deal could be met, the leaders of the US and Canada say.

Canadian Prime Minister Justin Trudeau

Canadian Prime Minister Justin Trudeau says it may be possible to strike a new NAFTA deal. (AAP)

The leaders of the US and Canada have expressed optimism that NAFTA negotiations could meet a Friday deadline for a deal, though Canada warned that hard work on a number of tricky issues is still needed.

Canada rejoined the talks to modernise the 24-year-old North American Free Trade Agreement after Mexico and the United States announced a bilateral trade deal on Monday.

"They (Canada) want to be part of the deal, and we gave until Friday and I think we're probably on track. We'll see what happens, but in any event, things are working out very well." US President Donald Trump told reporters outside the White House on Wednesday.

The upbeat tone contrasted with Trump's harsh criticism of Canada in recent weeks, railing on Twitter against Canada's high dairy tariffs that he said were "killing our Agriculture!"

Trudeau said he thought the Friday deadline could be met.

"We recognise 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.

"No NAFTA deal is better than a bad NAFTA deal."

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

Under US law, Trump must wait 90 days before signing the pact.

Trump has warned he could try to proceed with a deal with Mexico alone and levy tariffs on Canada if it does not come on board, although US lawmakers have said ratifying a bilateral deal would not be easy.

Canadian Foreign Minister and lead negotiator Chrystia Freeland said she was encouraged by the talks and progress so far, but added: "When it comes to specific issues, we have a huge amount of work to do."

She said on Tuesday that Mexico's concessions on automobile rules of origin and labour rights were a breakthrough.

Ottawa is also ready to make concessions on Canada's protected dairy market in a bid to save a dispute-settlement system, The Globe and Mail reported.

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 US from pursuing anti-dumping and anti-subsidy cases.

US Trade Representative Robert Lighthizer said on Monday that Mexico had agreed to eliminate the mechanism.

To save that mechanism, Ottawa plans to change one rule that effectively blocked American farmers from exporting ultra-filtered milk, an ingredient in cheesemaking, to Canada, the Globe and Mail reported, citing sources.

Trudeau repeated on Wednesday that he will defend Canada's dairy industry.


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Source: AAP


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