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NEW YORK (Reuters) – Canada is not making concessions to reach an agreement with the United States for a trilateral pact with NAFTA.
The administration of President Donald Trump has recently begun to increase pressure on Canada, urging him to reach an agreement by Sunday or to face the exclusion of one. North American Free Trade Agreement revised.
A spokesman for Canadian Foreign Minister Chrystia Freeland brushed aside the latest US remarks, saying Canada was not interested in focusing on deadlines.
US Trade Representative Robert Lighthizer said there is "some distance" between the two sides on issues such as access to the Canadian dairy market and the best way to resolve trade disputes.
"The fact is that Canada does not make concessions in areas where we think they are essential," he said at the Concordia Summit in New York.
"We will continue with Mexico," he said. "If Canada comes now, it would be the best. If Canada comes later, that's what will happen. "
He added, "We are somehow running out of time."
But Freeland spokesman Adam Austen said Canada would only sign a good deal.
"Our goal is substance, not deadlines. We will continue to negotiate for an agreement that is in Canada's national interest, "he said.
Lighthizer and Freeland are in New York for a meeting in the United States, but it is unclear whether they will meet.
US automakers and congressional aides now believe that an agreement with Canada is not possible before the deadline, which they say would likely lead the United States to a bilateral agreement with Mexico.
But they also predicted further talks with Canada in another attempt to resolve the outstanding issues before signing with Mexico, which would be set for November 30.
The Trump administration said the text of an agreement is needed by Sunday to allow the current Mexican government to sign it before he leaves office in late November.
Trump called for major changes to NAFTA, which he said led to the displacement of US manufacturing jobs to low-wage Mexico. Markets are nervous about the impact on an agreement that underlies annual trade of $ 1.2 trillion.
Canadian officials have said that despite American threats to go it alone with Mexico, they do not believe that Trump alone can turn the 1994 pact into a bilateral agreement.
US business groups, alarmed by the possible disruption of the three increasingly integrated economies, lobbied the White House to maintain NAFTA as a trilateral agreement.
Canadian Prime Minister Justin Trudeau, who has repeatedly stated that he would rather leave NAFTA than sign a bad deal, spoke in front of Lighthizer at an event organized by the Council on Foreign Relations in New York and took a more cautious tone.
"They (the United States and Mexico) have some agreements," he said. "I think there is a possibility to build on what they agreed on."
"With Mexico, we will not say 'disagree' because of Canada," Lighthizer said. "It makes no sense, so hopefully we will end up with something with Canada."
Canada also clarified that the United States must remove Trump's 25% tariff on automobiles for agreement.
The United States, citing security concerns, imposed tariffs on Canadian steel and aluminum at the end of May. Lighthizer stated that these rates would be taken into account once NAFTA is complete.
Reportage by David Lawder in New York; Additional report by David Ljunggren in Ottawa and David Shepardson in Washington; Written by David Ljunggren; Editing by Peter Cooney
