The new agreement between the USA and Mexico focuses primarily on automobile manufacturing, including a provision to require that 40 to 45 percent of all automobile components be made by workers earning $16 or more per hour, which the US hopes will help American manufacturers compete against low-wage auto workers overseas. I can't kill these people'.
"Prices go up", said Kristin Dziczek, an expert at the Center for Automotive Research in MI. "I think everybody is working toward a deal", said Flavio Volpe, president of Canada's Automotive Parts Manufacturers Association. Rather than doing that and sliding quietly into a two-way deal with America by giving them some increased access to our dairy market, Canada allowed its options to run out.
But dairy farmers have major political clout in Canada too and concessions could hurt Prime Minister Trudeau ahead of next year's elections. A bilateral deal announced by the United States and Mexico on Monday was a breakthrough that infused renewed optimism around a new NAFTA. Talks were also hung up on US demands to eliminate dispute-resolution panels that Ottawa considers essential, two Canadian officials said Friday.
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"Canada is a country that is good at finding win-win compromises. We're making progress. We're not there yet", Chrystia Freeland, the Minister of Foreign Affairs of Canada told reporters Friday afternoon.
Perhaps by coincidence or maybe out of necessity, the USA trade representative broke his silence for the first time since Tuesday, saying Canada has not compromised on a key sticking point. "We're not there yet". The only problem was that the announced deal was between only the US and Mexico. This established that Canada was not going to be taken seriously by the Americans. "It may be by Friday or it may be within a period of time, but ultimately they have no choice", Trump said Thursday in an interview with Bloomberg in Washington as bargainers struggled to resolve critical issues. We've been very clear about where we think there's room for give and take.
The talks will resume on Wednesday, the officials said. "We'll see what happens, I love Canada".
The comments stirred Canadian fear that Americans are not negotiating in good faith, and a Canadian source told AFP that Ottawa voiced disapproval to Lighthizer.
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"There have been no concessions by Canada on agriculture", he said.
The notification does not include Canada, the other member of the North American Free Trade Agreement.
New chapters governing the digital economy and stronger intellectual property, labor and environmental standards could also work to the benefit of US companies, possibly helping Trump to fulfill his campaign promise of creating more American jobs.
With the U.S. deadline to get an agreement by Friday, there were reports the sides were struggling to find compromise on the NAFTA mechanism for resolving trade disputes and on Canada's managed dairy market.
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US officials said negotiations with their Canadian counterparts will continue next week, and Canada may join the US-Mexico agreement "if it is willing". Talks of some kind with Canada are likely to stretch into September even if the preliminary agreement is announced Friday.