Canada's Freeland sits down with United States negotiators for tough NAFTA talks

4 takeaways from the U.S.-Mexico trade deal

Canadian Foreign Minister Chrystia Freeland engaged in trade talks in D.C. on Tuesday, after a trade agreement between the US and Mexico was announced on Monday.

A trade agreement between the United States and Mexico is critical to Nebraska agriculture and the state's overall economy, Gov. Pete Ricketts said Monday after President Donald Trump announced the countries have reached a preliminary deal to replace NAFTA.

"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.

"NAFTA has contributed to our ballooning annual goods trade deficit, which grew from $115 billion in 1993, the year before NAFTA's implementation, to almost $800 billion in 2017", the White House said Monday in a statement.

Trump said that he intends to terminate NAFTA and that the United States would immediately begin negotiations with Canada, the third party in the trilateral trade pact that he has called the "worst deal ever".

The sticking points between Ottawa and Washington likely will center on Canada's managed dairy market and how to handle some disputes among NAFTA partners, as well as patent protections for medicines. Even if more plants are built in Mexico, jobs will grow in the United States due to high levels of integration, with studies showing that U.S. parts make up 40 per cent of the value of every Mexican-built vehicle exported to the United States.

"If Chrystia Freeland goes down there and she starts going on and on about red lines again, then I think it's all over", he added.

Quebec, a province in which the dairy lobby is particularly prominent is now facing a provincial election.The Quebec Liberal Party leader Phillippe Couillard warned the federal government of political consequences if any concessions are made on supply management.

The Prime Minister said that ending "supply management" is not on the table and unacceptable for Canada.

Mexico paved the way by agreeing to a NAFTA 2.0 with the United States on Monday. So for a notice to be given to Congress, it would be necessary, I believe, to have a legal text that's been agreed to and signed off by all parties.

Canadian government officials were not available for an immediate comment on Wednesday.

The system has been in place since the 1970s and has survived several attempts to undo it.

Trump terminating NAFTA, negotiating with Canada
As the cameras rolled, the USA president pressed a button on his phone and said: "And I believe the President is on the phone". The lack of a trade deal with Mexico - America's top corn buyer - threatened to have a similar impact on corn prices.

If not, is it even legal - or politically feasible - for Trump to reach a replacement trade deal with Mexico alone?

"We think auto prices will rise", Krebs said in an email.

A Globe and Mail report late Tuesday, which cited unnamed sources, said Ottawa was prepared to make concessions to Washington on Canada's protected dairy market.

"We have been encouraged by the progress made by our NAFTA partners over the past weeks", Trudeau said.

What if Canada finds major problems in the deal and doesn't want to sign?

Mexican officials have insisted all along that NAFTA must be a trilateral deal and they have remained in Washington to participate in the talks.

He said the Fed will continue to raise interest rates, but noted that the US central bank sees no clear sign of inflation accelerating above 2 percent.

With all that being said, why is the Trump administration keeping Canada out of negotiations on the North American Free Trade Arrangement (NAFTA)? Canada has used the provision to challenge USA anti-dumping and countervailing duties.

Will she be presiding over the death of the 24-year-old continental trade pact?

The new trade deal between the USA and Mexico plans to be in effect for 16 years with a review every six years.

"What it entails is still light on details but it has been reported there are upped rules of origin requirements for autos from 62.5% to 75%, and 40-45% should be made by workers earning an average of USD16 per hour".

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