Trump threatens to exclude Canada from new NAFTA deal

Trump says 'no political necessity' to keep Canada in NAFTA

Trump says 'no political necessity' to keep Canada in NAFTA

Trump's caution to Congress to "not interfere with these negotiations" appeared to refer to one potential obstacle: the fact that lawmakers have empowered him to reach a so-called "fast track" agreement with both NAFTA partners, not just Mexico.

The U.S. -Mexico deal reached earlier this week does away with the Chapter 19 panels, leaving U.S. trade complaints against Mexico to be settled in U.S. tribunals or at the World Trade Organization, although Mr. Trump threatened this week that he might pull his country out of the WTO altogether.

He says on Twitter that a deal will go ahead with or without Canada's involvement, and if Congress tries to intervene, he will "terminate NAFTA entirely".

Trade tensions between the United States and Canada increased after the Toronto Star newspaper quoted Trump as saying he would sign a deal only if it was "totally on our terms".

Trump took to Twitter again Saturday night, tweeting "We shouldn't have to buy our friends with bad Trade Deals and Free Military Protection!"

"As we've said all week, we're working toward a modernized NAFTA that is good for the middle class and people working hard to join it", said Adam Austen, a spokesman for Canadian Foreign Minister Chrystia Freeland. "This is a very, very intense set of conversations and I continue to feel that there is a lot of good will on all sides".

Talks to keep Canada in the trade bloc are to resume Wednesday as the two countries try to resolve thorny issues including Canada's dairy market and USA efforts to shield drug companies from generic competition.

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Trump notified Congress on Friday that he plans to sign an agreement in 90 days with Mexico to replace NAFTA and hopes Canada can brought on board, too.

Flags of the US, Canada and Mexico fly next to each other in Detroit, Michigan, US Wednesday. Freeland then hurried to Washington for talks aimed at preserving Canada's membership in the regional trade agreement.

"Our officials are continuing to work toward agreement", US Trade Representative Robert Lighthizer said in a statement, stressing the benefits to US workers and businesses. American and Canadian negotiators will return to negotiations Wednesday.

In a second tweet Saturday, Trump suggested that the United States would be better off with no trade agreement than with a flawed NAFTA deal. Trade between the three countries surged. Continetti continued. "President Trump understands the economic power of the United States in a way many other American politicians do not". Talks on a new trade deal started a year ago but bogged down over US demands, including some meant to return manufacturing to the United States.

The withdrawal process would require Trump to give Mexico and Canada 6 months' notice of his intent to leave the pact. The deal announced Monday would, among many other things, require that 40 percent to 45 percent of a vehicle be made in a North American country where auto workers made at least $16 an hour - that is, not in Mexico - before qualifying for duty-free status.

Turkey's lira has suffered in the wake of us sanctions and tariffs instituted in response to the imprisonment of American pastor Andrew Brunson. Another key issue is USA tariffs on steel and aluminum imports, though it's unclear whether relief from those will be included. Opening Canada's milk-products sector to more USA imports would be a small price to pay for preserving an independent dispute-resolution mechanism.

Indeed, the U.S. President has seemed to enjoy turning the screws on this country ever since Prime Minister Justin Trudeau declared at the Group of Seven meeting in June that Canadians "will not be pushed around" on trade by the United States.

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