The latest news from NAFTA: the United States is looking into Chapter 19 in exchange for better access for US dairies

Prime Minister Justin Trudeau is now very involved in the ultimate efforts to conclude a free trade agreement, sources claiming that the Trump government is ready to accept Canada's desire to maintain the settlement mechanism. disputes under Chapter 19 in exchange for greater market access. American dairy products.

The talks have taken a frantic pace in the last 24 hours. Jared Kushner, the son-in-law of President Donald Trump, has pleaded for an agreement before Sunday's cut-off date to begin a 60-day countdown before signing a final revamped pact. End of november.

The Saga of NAFTA So Far: A Guide to Trade, Talks and Trump

The United States reached an agreement in principle with Mexico in August and put pressure on Canada to sign. Mr. Trump repeatedly threatened to hit Canada with auto rates if he could not reach an agreement, and US and Mexican officials warned they were ready to sign a bilateral deal if Ottawa put too much time to reach an agreement.

Canada is ready to allow the US dairy sector to enter Canada at rates above 3.2% of the Trans-Pacific Partnership from 11 countries, sources said. Ottawa has also made concessions on Section 7, which is part of the country's milk classification system used to set prices for skim milk, whole milk powder and protein concentrates.

A senior Canadian official involved in the talks said that there was no final written approval on chapter 19 or access to dairy products, but the insider has stated that both parties were close to an agreement. An informed US source of the talks says that a final agreement is likely to change and dilute the dispute settlement system at the request of the United States, including limiting it in time.

Canada is also willing to accept the same arrangement as Mexico to increase its duty-free limit to $ 100, according to one source. Canada duty-free currently costs $ 20.

The US source said, however, that details on the franchise limit had not been finalized yet. Canada argued that the $ 100 threshold was too high, that it would lose revenue from the GST and objected to the fact that the new rules will apply to goods from all over the world. country, not just its NAFTA partners. The source indicated that Canada was looking for some sort of trade-off between the ability to collect taxes on goods and the number corresponding to the threshold.

A higher duty-free limit would benefit consumers, who would pay less to order products online, but could hurt retailers by exposing them to increased competition.

US negotiators are unwilling to eliminate 25% tariffs on Canadian steel and aluminum and to ensure that there will be no more tariffs on automobiles in the future.

Canadian and US industry sources familiar with the negotiations said Canada initially insisted on absolute tariff exemptions, but has now begun to look at US proposals that Canada would accept quotas in exchange for exemptions.

A source in the US industry said the quotas would likely be designed to match current exports and create a growth margin. The idea would be to protect the existing industry while closing Canada and Mexico so that other countries can bypass the tariffs and ship the steel to the United States.

A Mexican source familiar with the talks said Canada's quest to protect its cultural industries was also on the agenda. The source said Mexico had supported Canada on this issue.

The senior Canadian official said Trudeau and Foreign Minister Chrystia Freeland were planning to hold a press conference announcing an agreement Sunday night or Monday morning if the talks continued.

But the insider warned that the talks were still ongoing and that Mr. Kushner and the US Trade Representative, Robert Lighthizer, still had to get President Trump's approval.

The Mexican source said officials in the country were optimistic about the Sunday deal.

Freeland canceled a speech at the UN General Assembly on Saturday as NAFTA talks escalated in a context of disruption.

According to a source involved in the secret negotiations, talks between US and Canadian officials were conducted by secure video link.

Ms. Freeland has not yet planned to come to Washington, said a Canadian official. A US industry source said that Canada's Ambassador to the United States, David MacNaughton, had also done a lot of work to reach an agreement, and that representatives of Mr. Trudeau's office were also in talks.

On Friday night, Trudeau tweeted that he would have had "good calls" with the CEOs of three of Canada's largest banks – Dave McKay of the Royal Bank of Canada, Darryl White of the Bank of Montreal and Victor Dodig of Canadian Imperial Bank of Commerce. In his tweet, Mr. Trudeau thanked them for their "advice and support", seeking to stand together with the leaders of the industry.

The calls were launched by the Prime Minister and took place over the past few days, while negotiations were at a critical juncture. Canada's major banks are well engaged: RBC, Toronto-Dominion Bank, BMO and CIBC all have significant US operations, while the Bank of Nova Scotia has a significant presence in Latin America, including in Mexico.

Mr. Dodig said the prime minister had contacted him to take stock of the state of negotiations. "I have reaffirmed the importance of NAFTA for our customers all over North America," said Dodig in an email released on Saturday.

Spokesman White said a successful conclusion to the NAFTA negotiations "represents the greatest economic opportunity for the three countries" and added: "Negotiators have demonstrated a remarkable tenacity and determination. "

Mr. McKay was not available to comment.

At the end of June, Mr. Trudeau also tweeted about his meeting with Scotiabank's CEO, Brian Porter, with whom he talked about trade, and with his CEO, Bharat Masrani.