US Canada Trade Deal 'Imminently Possible,' Freeland Says

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Austen, asked whether Freeland might return to Washington later in the week, said no decisions had been taken. White House economic adviser Larry Kudlow last week said milk was the main issue standing in the way of a NAFTA deal.

Agriculture Secretary Sonny Perdue says Canada must make changes to dairy trade with the United States as part of the North American Free Trade Agreement (NAFTA) negotiations.

"I think we understand there are certain issues on which we will need to compromise", one of the sources said when asked about increased dairy access for the USA industry.

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".

Trump has notified Congress he intends to sign the trade deal reached last week with Mexico by the end of November, and officials said the text would be published by around October 1. Prime Minister Justin Trudeau has said the mechanism is crucial to a new NAFTA, but Mexico already has agreed to drop it.

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"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.

"We have been very clear on that, that there can not be more access given", Wiens said in a telephone interview.

The talks are focused on USA 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.

"We're negotiating all this at once".

us president Donald Trump threatened Friday to impose a 20 per cent tariff on cars if a NAFTA agreement can't be reached with Canada.

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Freeland returned to Washington on Tuesday to continue meeting with her U.S. counterpart.

"We're looking for a deal which is good for Canadians, which is good for Canadian workers, which is good for Canadian families (and) good for Canadian farmers", Freeland said on "The West Block".

Mexico is also expected to rejoin the talks at some point on Friday, allowing for three-way negotiations to resume after a two-month break. Freeland spent a day in Washington last week and said she and Lighthizer were making very good progress in some areas, although a deal remained out of reach. But a deal without Canada has virtually no chance of being passed, Mulroney said.

Under that system, the US exports about $500 million of dairy products duty free to Canada - three times what it imports from here - but faces tariffs of up to 300 per cent for anything more.

The hope is for a trilateral agreement in principle that Congress can approve before Mexico's new president takes office on December 1.

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