Canada and the United States will restart high-level talks Tuesday on the North American Free Trade Agreement as Foreign Affairs Minister Chrystia Freeland returns to Washington in hope of making progress on stubborn differences.
"Our officials are meeting now and will be meeting until very late tonight".
Meanwhile, despite the "several" issues still in dispute, there is strong will on the USA side, especially, to wrap up the talks by Friday, trade lawyer Dan Ujczo said Monday.
"Maybe that helps us all put into perspective the negotiations that we're having - and also put into a little bit of historical perspective the importance and the significance of the relationship between Canada and the United States", Freeland told reporters outside the offices of her counterpart, U.S. Trade Representative Robert Lighthizer. "At the end of the day, neighbors help each other when they need help".
Republican Tom Reed, a member of the House ways and means committee, said Trump doesn't necessarily want the Liberals to get rid of the system, but simply to remove what the Americans see as trade barriers. A study commissioned by the Canadian Embassy says 9 million jobs "spread across every congressional district" are supported by the Canada-U.S. economic partnership.
Canadian Prime Minister Justin Trudeau said he thought the Friday deadline could be met.
"Without Chapter 19, NAFTA is utterly useless as it would subject Canada and Mexico to the vagaries of the USA political system and its courts when determining trade policy actions", said Derek Holt, vice-president at Scotiabank Economics, in a note recently.
Freeland and Lighthizer left the bargaining table Friday without a deal following two weeks of negotiations.
"When it comes to Trump tweets there's a discount premium to them", said Carleton University professor and foreign policy expert Fen Hampson, who advises Trudeau to "hunker down, say nothing, not rise to the bait".
It seems nearly a given now that any trade deal Canada strikes with the United States will have to offer up more American access to the Canadian dairy market.
The latest talks between Canada and the United States have been intense but constructive, marking a departure from acrimonious tit-for-tat that surrounded past rounds.
Canada wants a permanent exemption from Trump's steel and aluminum tariffs, and removal of the threat of auto tariffs.
Trudeau meets on Tuesday with the Dairy Farmers of Canada, which suspect he might be ready to sell them out.
What Trump hesitates to acknowledge is the interdependence between the USA and Canadian economies.