Canada to resume NAFTA talks

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While that latter issue has been widely seen as the major sticking point, Prime Minister Justin Trudeau has signalled in recent days that Canada might be prepared to show some flexibility when it comes to dairy.

Canada's foreign minister is to be in Saskatoon on Wednesday to update her fellow caucus members on the ongoing negotiations.

So far, Canada has been unable to obtain a guarantee from the United States that Canadians would not be hit with punitive USA auto tariffs if Ottawa agrees to a new NAFTA deal with Washington.

Candian Foreign Minister Chrystia Freeland walks out of the U.S. Trade Representative's office to speak to journalists in Washington, U.S., August 28, 2018.

"Maybe that helps us all put into perspective the negotiations that we're having and put into historical significance the relationship between Canada and the United States", Freeland said.

The dairy system, or supply management as it is known, falls outside of the North American Free Trade Agreement (Nafta). "I think everybody is working towards a deal", said Flavio Volpe, president of Canada's Automotive Parts Manufacturers Association.

Canada's parliament unanimously condemned the personal attacks on Trudeau on Monday, as the famously polite nation simmered over the U.S. weekend broadsides.

Canada has encouraged overproduction and flooded export markets for milk proteins used in cheese and yogurt, hurting United States dairy farmers, Perdue said in an interview aired on Sunday on C-SPAN television. She said she spoke with Lighthizer over the weekend and they agreed it would be useful for them to meet again face to face.

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Daniel Ujczo, a US trade lawyer who has worked for both the Canadian and the USA governments, rejects the notion that Canada and the United States are at a stalemate.

"If (Trump) goes to Congress with a bilateral arrangement with Mexico, he's got problems - real problems", Mulroney said.

No word yet on when she might return to Washington to continue NAFTA talks.

"We have been very clear on that, that there can not be more access given", Wiens said in a telephone interview. "I can't read the tea leaves, but. coming back and saying, "Sorry, we couldn't get an agreement" is just too hard politically to manage" on both sides, Sosnow said.

President Donald Trump has made it very clear that American farmers are a priority, Mulroney said - adding Trump needs a "victory" for them.

"Forget what you read about NAFTA negotiations and Twitter wars, that's not who we are", Craft told the gathered crowd as she thanked Canada - and Gander - for playing host in 2001 to countless stranded American air passengers.

"Without Chapter 19, NAFTA is utterly useless as it would subject Canada and Mexico to the vagaries of the US political system and its courts when determining trade policy actions", said Derek Holt, vice-president at Scotiabank Economics, in a note recently.

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