Canadian envoy calls NAFTA talks 'constructive'

Will Trump's NAFTA Deal Benefit Automakers

"I love. I love the people of".

However, she said the NAFTA reference gives the Bank of Canada options to possibly stay on hold next month, particularly if trade talks - and the outlooks for the economy and inflation - deteriorate.

"If there is a deal, you could see an immediate snap-back in the loonie, assuming that the terms are not overly cumbersome, but the initial reaction will be that getting any deal signed would be positive for the Canadian dollar." he said in an interview.

Another issue is U.S. complaints about Canada's strictly controlled dairy market, which Trump criticized again on Wednesday, blasting the tariffs that are as high as 300 percent.

While the Trudeau government has rejected Trump administration criticisms of Canada's high tariffs on dairy products, it has not explicitly stated that supply management - now a hot-button issue on Canada's political scene - is non-negotiable.

In addition, the tentative deal would require that at least 75 percent of an automobile's value be produced in North America (as opposed to, say, China) if that vehicle is to qualify for duty-free importation into the US.

A former Canadian prime minister says dispute resolution under the North American Free Trade Agreement isn't the sticking point it once was - one day before negotiators are set to resume trade talks in Washington.

He said it was "pretty hard to see" how efforts to revamp the pact would work "without having Canada in the deal".

Data released on Wednesday by Statistics Canada showed Canada's trade surplus with the United States hit C$5.3 billion ($4.0 billion) in July, the largest since October 2008.

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Talks to revamp the North American Free Trade Agreement are set to resume as USA and Canadian negotiators push to strike a deal amid President Donald Trump's threats to walk away.

Trudeau said Canadians will not sign onto a deal that does not include a dispute resolution mechanism and exemptions for cultural industries - two positions that were among the pillars of the original 1988 Canada-U.S. free trade deal. During those negotiations, the Canadian government walked away from the negotiating table over a disagreement with the United States about Chapter 19 for the FTA. "So ensuring that we continue to control our news, our broadcasts, our airwaves and our media is really - keeping it in Canada and independent - is something that's really important to us".

Last week, Trump notified Congress of his plans to sign a trade deal with Mexico, replacing NAFTA.

The talks to remake NAFTA resumed after hitting an impasse last week over 's high dairy tariffs and US moves to eliminate a dispute resolution system known as Chapter 19 that potentially favors Ottawa.

Minutes later, Trump lashed out at the labor leader on Twitter for "poorly" representing his union and making comments that were "against the working men and women of our country, and the success of the USA itself".

Faced with an unpredictable US president ready to strike on Twitter, Trudeau said the dispute resolution mechanism in Chapter 19 ensures trade rules are followed.

US President Donald Trump has threatened to push ahead with a bilateral deal with Mexico, effectively killing the nearly 25-year-old three-country Nafta pact, which covers US$1.2 trillion in trade.

But in recent days he has become more aggressive towards Canada on Twitter - bluster that some trade experts are dismissing as a predictable negotiating tactic. "I think the relationship between Canada and the United States is so close and deep", he says, "that it will take more than one president to destroy it". Trump raised stakes over the weekend by tweeting that there is "no political necessity" to keep Canada in a new trade pact, touting a side deal reached with Mexico.

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