Trump criticizes Canada over NAFTA, says Trudeau meeting dismissed

UNITED NATIONS (Reuters) – US President Donald Trump Wednesday criticized Canada for sluggish NAFTA talks, saying he was so upset that he rejected Prime Minister Justin Trudeau's request to meet head-to-head.

Trump 's remarks, which repeated the threat of imposing tariffs on Canadian cars, pushed the Canadian dollar CAD = D4 to a one – week low against the US greenback .DXY.

The comments also mark a new dip in the relations between the two leaders. Trudeau spokeswoman Chantal Gagnon said, "No meeting was requested. We have no comments beyond that.

The attack cast further doubt on the future of the North American Free Trade Agreement, which applies in three countries, which supports $ 1.2 billion in annual trade between Canada, Mexico and Canada. United States. Markets and business groups are openly concerned about the damage a collapse could cause.

Trump, who wants major changes to the 1994 treaty, has already drafted a text with Mexico and threatens to leave Canada unless register before Sunday.

Trump told reporters that he had rejected Trudeau's request for a meeting "because his rates are too high and he does not seem to want to move out and I said 'forget it'. And frankly, we're just thinking of taxing cars coming from Canada. "

Earlier on Wednesday, Trudeau ignored US pressure to quickly agree to an agreement and said it was possible for the three member countries to fail to reach a new deal.

Both parties are still far behind on major issues such as how to resolve disputes and US requests for greater access to the Canadian market for protected dairy products.

"We are very dissatisfied with Canada's negotiations and negotiating style. We do not like their representative very much, "said Trump, referring to Canadian Foreign Minister Chrystia Freeland.

Relations between Canadian and American leaders have been cold since June, when Trump left a Group of Seven summit in Canada and then accused Trudeau of being dishonest and weak.

US Trade Representative Robert Lighthizer, Freeland's counterpart at the talks, complained on Tuesday that Canada was not making enough concessions and time is running out.

Canadian officials said they did not believe Trump could rework NAFTA in a bilateral agreement without congressional approval.

"We will continue to work as long as necessary to achieve good understanding for Canada," Trudeau told reporters earlier at the United Nations. He repeatedly stated that he was ready to leave the talks rather than sign a document that he says is bad.

Asked about the challenge of auto tariffs, Trudeau said Canada should feel confident "on the way forward as we move – if we do – on a NAFTA 2.0".

The auto industries of the three countries are highly integrated and the tariffs on Canadian cars would be extremely disruptive.

Speaking separately, Canada's ambassador to Washington said that on a scale of 1 to 10, the chances of an agreement before the September 30 deadline were five.

"If this is not the case at the end of the week, we will continue to work and try to find the best deal for Canada," said MacNaughton at a Politico Canada event in Toronto.

A Trump administration official said the text of the agreement with Mexico was to be released Friday.

The official refused to be named because the case has not yet been made public. A spokesman for the US Trade Representative's office declined to comment.

Trudeau said existing US steel and aluminum tariffs at the end of May should be removed before Canada feels comfortable signing a new NAFTA.

The Trump administration said the text of an agreement between the three countries is needed by Sunday to allow the current Mexican government to sign it before it leaves office at the end of November.