Canadian Prime Minister Justin Trudeau identified two "red lines" this week.
Speaking to reporters Friday on Air Force Once, he said: "I don't want to do anything bad to Canada". They appear to be mirroring the rhetoric of the Trump administration, which insists that it is pursuing a better deal for US citizens.
"If I tax cars coming in from Canada, it would be devastating".
Trump's rhetoric escalated further in the North Dakota speech.
"Actually, on some countries, including Canada, a tax on cars would be the ruination of the country", he said. It'd be the ruination of the country. "It's a compressed timeline with an ever-changing counterparty", said Volpe, who was in Washington on Thursday for meetings with auto industry representatives on the possible impact of Trump's threat to impose tariffs on Canadian automobiles. There's congressional pressure that any new NAFTA pact must include Canada, and that pressure gives the Canadians clout at the negotiating table. This new term of application, although not indefinite as it might been desired, enabled the unblocking of the negotiation due to the intention of the U.S. during the entire process to include the Sunset clause, which proposed an automatic termination of the treaty after five years when the parties did not agree to extend it.
President Donald Trump has struck a trade deal with Mexico and threatened to push ahead without Canada, a move that would kill NAFTA.
Today, in the White House, Canadian Foreign Affairs Minister Chrystia Freeland will sit down opposite U.S. Trade Representative Robert Lighthizer to resume negotiations on revising the North American Free Trade Agreement (NAFTA). Freeland left open the possibility of another meeting later on Friday.
Lighthizer is scheduled to be in Brussels on Monday for trade talks with the European Union's trade commissioner, Cecilia Malmstrom, and is due back in Washington on Tuesday. "In a trade negotiation, nothing is done until everything is done", Freeland said. Trump's top economic adviser, Larry Kudlow, claimed Friday that the problem was Canadian inflexibility on dairy.
"I think the United States would rather have a trade deal with Canada, but it has to be a good deal, right?"
"The word that continues to block the deal is: M-I-L-K", Kudlow said during an appearance on Fox Business.
Canada also wants a permanent exemption from Trump's steel and aluminum tariffs, and for Washington to eliminate the threat of USA auto tariffs.
Mexico wants to end to a tariff dispute over steel and aluminum with the United States prior to signing off on a reworked trade agreement with its northern neighbor, Mexican Economy Minister Ildefonso Guajardo said on Thursday. "We do need Chapter 19". But the official said there are other unresolved issues, too, including Trudeau's two key recent demands.
Meanwhile, Trudeau used a series of public appearances to identify what he called two "red lines" - the need to preserve dispute panels, in some form, now allowed under NAFTA's Chapter 19, and to preserve an exemption for Canadian cultural issues.