The United States and Canada are working hard to reach an agreement with NAFTA


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The United States and Canada are working hard to reach an agreement by Sunday, a self-imposed deadline to conclude an updated North American Free Trade Agreement (NAFTA).

President TrumpDonald John TrumpTrump: Kim Jong Un and I fell in love Trump again attacked Warren while Robert DeNiro "Pocahontas" rallies voters: "You are the bosses" MORE was ready to give up the weekend deadline with Canada because the United States and its largest trading partner still had major problems to resolve.

Instead, the White House and Mexico on Friday opposed the publication of the text of an exclusive Mexican agreement, as negotiations intensified between the United States and Canada to meet the deadline.

Behind the scenes, US and Canadian negotiators continued negotiations throughout the week. On Saturday, Canadian Foreign Minister Chrystia Freeland canceled her speech at the United Nations to return to Ottawa to work with her trade team.

According to reports in the press, Canadian officials said the talks were "intense", but they were still cautious about a breakthrough at the end of the weekend.

The nations are eager to finalize the agreement of the three nations so that it can be signed by Mexican President Enrique Pena Nieto before he leaves office on Dec. 1.

His successor, the new leftist deputy Andrés Manuel López Obrador, could ask for new negotiations as soon as he takes office.

Trump touted the deal with Mexico at a rally in West Virginia on Saturday night and said he would see what will happen with Canada, but "they must come with us".

But postponing the deadline carries risks beyond Mexican politics.

Under the current authority of the President for Trade Promotion (TPA), the administration must publish the text of any new treaty 60 days before its signature.

Congressional Republicans, who met with the US Trade Representative Robert LighthizerRobert (Bob) Emmet Lighthizer McConnell urges GOP Senators to call Trump about tariffs. Companies prepare for the commercial war MORE On Thursday, he said Canada's inclusion in the deal was important, but they appeared to want to strengthen Trump's bargaining position by threatening to endorse Canada's liberalization agreement if Ottawa did not adhere to it.

"I think the window is closing quickly for Canada to join, and if they want to risk not being part of an agreement with Mexico and us, they have to recognize that it will be a reality here. the very near future, "said Rep. Tom ReedThomas (Tom) W. Reed The Centrists pledge to refuse any support to the President, unless the rules of the House change. How Trump's Tax Law Has Been Passed: Obstacles Are Quickly Emerging Jordan embarks on an election campaign as House Speaker becomes President PLUS (R-N.Y.), Member of the House Committee on Ways and Means, who oversees trade policy.

But others have pointed out that a NAFTA free of restrictions on Canada would put a damper on the status quo. American economy. Trump has threatened to apply tariffs on motor vehicles from Canada, a decision that would affect US automakers and auto parts dealers.

"I think it could be very damaging for many industries that are working in great numbers, mainly with Canada," said the representative. Mark WalkerBradley (Mark) Mark WalkerHouse Spends 4B Spend Bill To Avoid Closing On The Money: Midterms To Shake House Finance Sign | Head of Chamber says US not at trade war | Mulvaney moves the CFPB unit out of DC | Conservatives frustrated by big spending bills (R-N.C.).

The business groups have been firm in saying that they would not support an agreement without Canada.

Bryan Riley, director of the National Taxpayers Union's Free Trade Initiative, said a new NAFTA deal "that does not include Canada should be a starting point for US taxpayers, consumers and businesses ".

"It's a huge failure not to guarantee Canada's participation," Riley said Friday.

At the same time, Thomas Donohue, President and CEO of the American Chamber of Commerce, recently said that "if Canada does not interfere in the agreement, there will be no agreement."

The Congress has flexibility with fast turnaround times, so that Canada can always be accommodated whenever an agreement is reached.

"Clearly, these are legislative parameters set by Congress, and if Congress wants to change that, I'm sure we can do it, regardless of the existing interpretations," said Reed.

The prospect of Democrats taking over the House in the November mid-term elections adds a layer of additional uncertainty to the process.

treasury secretary Steven MnuchinMnuchin says Mnuchin believes economic growth should last several years, said that the administration still wants an agreement with Canada, but he would still expect the Congress to approve an agreement between the United States and Mexico.

"If, for whatever reason, we do not reach an agreement with Canada, we will have an agreement with Mexico, an excellent deal," said Mnuchin at an event organized Thursday by The Hill.

"I am convinced that Congress will pass this."

Negotiations between the United States and their northern neighbor have been increasingly tense in recent months.

Over the summer, the United States ended the trilateral negotiations and decided to reach an agreement with Mexico alone, in the hope that Canada would come under pressure.

Since then, progress has been slow.

Tensions were evident at Trump's press conference on Wednesday when he said he had refused a meeting with Canadian Prime Minister Justin Trudeau – a meeting that Canadian officials have stated that he was not going to be there. she had never been solicited – at the United Nations.

"His rates are too high, and he does not seem to want to move, and I told him to forget about it," Trump told a press conference at the United Nations in New York.

"We are very dissatisfied with Canada's negotiations and negotiating style and we do not like their representatives very much," he added, apparently referring to Canadian Foreign Minister Chrystia Freeland.

Lighthizer said earlier this week that "there is still a long way to go" around NAFTA's "big problems", including US access to the Canadian dairy market.

Still, Trump and Lighthizer have left the possibility that Canada will eventually get into the deal.

Some Democrats have expressed frustration at Trump's bitter approach to Canada in the negotiations.

representative Brian HigginsBrian Higgins11 Dems launches anti-Pelosi leadership plan: reports Perez: "Time will tell" if Ocasio-Cortez wins signal of a need for new leader The Hill's Morning Report (DN.Y.) told BBC Business earlier in the week that the Trump administration had failed in its obligation to rework NAFTA and that a trade deal without Canada "was a failure bitter. "

Canadians have been relatively calm against Trump's critics and defended their position to seek a good deal for their country.

Trudeau told reporters Thursday in Ottawa that "Americans are finding the negotiations difficult because Canadians are tough negotiators, as we should be," according to reports.

"But a good, fair deal is always possible. We will not sign a bad deal for Canadians, "he said.

Despite all the tensions, there is still optimism about the possibility for the United States and Canada to finally reach an agreement.

The two countries signed a Trans-Pacific Partnership Agreement with twelve countries in early 2016, after years of negotiations.

"My feeling is that it's still time for Canada and the United States to reach an agreement on this point," said Simon Lester, a trade expert at the Cato Institute.

"We do not know exactly what the deadline is to solve the problem, but I think that everything that is done in the next two weeks would still be acceptable," he said.

"The question is this: are Canada or the United States ready to give ground on key issues?" he said. "Is there a compromise to be made? We will see."

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