08 September, 2018
One of the major sticking points in the talks is a so-called dispute resolution system, contained in Chapter 19 of the original NAFTA agreement.
The Bank of Canada held interest rates steady on Wednesday as expected and said more hikes would be needed to keep inflation on target, boosting speculation it could tighten monetary policy next month.
She said officials will meet late into the night to review additional issues, and the ministers will resume talks Thursday, noting that "all sides are committed to doing what it takes to get a good deal". "Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off", he tweeted on Saturday.
As the two sides met for talks, new economic data showed that the US trade deficit with Canada grew to $3.1 billion in July.
The White House has pressured Canada to accept the preliminary agreement it struck with Mexico last Monday to update the trilateral trade deal.
Trudeau on Wednesday insisted that Canada would work to maintain a dispute settlement process in the deal, provisions that the US prefers to ditch.
"We sent them (the officials) a number of issues to work on and they will report back to us in the morning, and we will then continue our negotiations", Freeland told reporters on leaving the U.S. Trade Representative's office in Washington on Wednesday.
Talks to revamp the North American Free Trade Agreement are set to resume as U.S. and Canadian negotiators push to strike a deal amid President Donald Trump's threats to walk away.
The problem for Trump is that USA business and farm groups as well as a broad bipartisan swath of legislators say they will oppose any deal that doesn't include Canada.
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Canada is insisting on preserving a dispute-review procedure that the United States and Mexico have agreed to eliminate.
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"We are making good progress".
Last week, U.S. President Donald Trump announced he had reached a bilateral trade agreement with Mexico that would replace the three-country NAFTA.
The talks to remake NAFTA resumed after hitting an impasse last week over 's high dairy tariffs and US moves to eliminate a dispute resolution system known as Chapter 19 that potentially favors Ottawa.
Trump touted the strength of the US economy, saying new USA trade deals could help economic growth exceed a second-quarter Growth Domestic Product (GDP) growth rate of 4.2 percent. Under NAFTA's Chapter 19, any of the three trading partners can complain to an independent panel of experts about another country's anti-dumping or anti-subsidy duties.
Under Congressional rules for passing trade pacts, the administration must publicly release text of the agreement 60 days before any signing, meaning wrapping up the US-Canada negotiations this month could put everything back on track. "We have a president that doesn't always follow the rules as they're laid out", Trudeau said in a radio interview.
"I'm not going to negotiate in public, but what I have said time and time again is that our government, and I personally, will stand up to defend supply management and our dairy farmers", Trudeau said on Friday. "There is no political necessity to keep Canada in the new NAFTA deal", he wrote on Twitter over the weekend.