Canada ready to allow US dairy access in NAFTA talks

Gold catches late NY bid on NAFTA headlines, but . . .

In return for concessions on dairy, Canada could request USA concessions on the so-called Chapter 19 dispute resolution mechanism that allows Canada to combat us anti-dumping duties that Ottawa regards as unjustified.

The uncertainty over the fate of NAFTA, in light of a tentative U.S. -Mexico trade deal, has not gone away even as trade experts note that members of Congress, concerned about the trade ties between the two countries, may help ensure that a final deal includes Canada.

Ottawa and Washington are trying to reach an agreement that could be submitted to the U.S. Congress by month's end.

As the two sides met, new economic data showed that the US trade deficit with Canada grew to $3.1 billion in July.

The talks are focused on US demands to scrap the so-called Chapter-19 dispute resolution mechanism in NAFTA, overturn some of Canada's current "carve-out" of cultural industries from free-trade rules and loosen protections under the dairy sector's supply management system.

Mulroney said Justin Trudeau phoned him last weekend to discuss the NAFTA situation and the two spoke for an hour.

Mulroney acknowledged U.S. Trade Representative Robert Lighthizer is on a short leash from the White House when it comes to what he can offer in the talks, but noted that Trump trusts Lighthizer a lot.

His comments echoed Trump, who said on Tuesday that while Ottawa wants a deal, he could go either way, depending on what concessions will come from the talks. "People are kind of sitting on the sidelines thinking, 'How will this affect us in the future?' If we were to lose the auto industry here that would put us into some type of recession", Chiodo said, noting that the auto trade has "always been pretty fair" for both the USA and Canada. The United States and Mexico reached an agreement on overhauling NAFTA at the beginning of last week, turning up the pressure on Canada to agree to new terms.

Data released on Wednesday showed the US trade deficit hit a five-month high of $50 billion.

"This isn't like some of the other NAFTA rounds where people were introducing poison pills for political reasons or otherwise", he said.

Trudeau has said Canada could be willing to be flexible on dairy.

"Our farmers don't have access to the Canadian markets the way that they have access to us", Perdue said in an interview that aired Sunday on C-SPAN.

The trade talks were overshadowed in Washington by the anniversary of the terrorist attacks of September 11, 2001, and Freeland took the opportunity to tout the importance of the US-Canada relationship.

Trump is threatening to move ahead on a deal without Canada. "They're really hammering this out", said Orr, who is now senior global trade adviser for a Washington law firm.

Trudeau replied, "Sorry to disappoint, but we continue to work hard and we are positively optimistic that we can get a win-win-win for all three countries". "He's railed against this thing (NAFTA) and they've been at the negotiating table for now over a year".

Yet, he stressed that "if we sign the deal it'll be. for Canada and Canadians".

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