Trump says "no political necessity" to keep Canada in new NAFTA deal

Trump says

Officials had appeared to be on track to reach a deal that would rewrite the North American Free Trade Agreement (Nafta), but in a weird twist, inflammatory comments from President Donald Trump angered Canadian officials and threatened to upend the talks. "If we don't make a fair deal for the USA after decades of abuse, Canada will be out", Trump said on Twitter.

Trump notified Congress on Friday that he plans to sign an agreement in 90 days with Mexico to replace Nafta and hopes Canada can brought on board, too.

Trumka, who represents more than 12.5 million Americans, predicted union workers would choose Democratic candidates in the November mid-term elections based on the president's economic track record.

But the official said Washington could go ahead with just Mexico if Canada decides not to sign on to the near trade deal. It's unclear whether the authority Trump has to renegotiate NAFTA extends to a deal done with just Mexico, and lawmakers - as well as Mexican officials - continue to stress the need for Canada's inclusion.

Driving that optimism was agreement on auto content that would favour Canada and the United States due to their higher-wage workers, making it less appealing for manufacturers to move production to Mexico.

Trump also has attacked the current trilateral pact repeatedly, calling it the "worst trade deal ever made". The deal would then not be a reworked version of NAFTA, but a bilateral U.S. -Mexico trade deal.




Indeed, whenever Trump's name came up, she showered her opposite number - U.S. Trade Representative Robert Lighthizer - with praise, suggesting the two of them are engaged in a joint effort to overcome their mutual impasse, regardless of what the White House might think.

The talks had taken an odd turn for the worse Friday over news that Trump had told Bloomberg News that he was not willing to make any concessions to Canada. "You said that the Mexican deal is closed- there's still a lot of work left to be done even on the Mexican deal, Chris, because of the language isn't drafted, we haven't seen whole chapters of the thing".

On Twitter on Saturday, Trump said there was "no political necessity" to keep Canada in Nafta. He was involved in tough negotiations for the Canada-U.S. However, Canada and the USA did not meet the negotiating deadline, and talks are to continue this week.

In a reflection of the gravity of the situation, Trump abruptly canceled his golf game to keep working on a deal, according to Sarah Huckabee Sanders. Outgoing Mexican President Enrique Peña Nieto wanted to sign a deal before he left office December 1. Mexico swiftly retaliated with import tariffs on some American goods, including steel, apples and pork. Ottawa does have other complaints. "If we don't make a fair deal for the USA after decades of abuse, Canada will be out", he tweeted. They agreed to resume talks on Wednesday.

But the talks with Canada snagged over the mechanisms used to resolve disputes among partners, and on Ottawa's strictly controlled dairy sector.

When the Trump administration notified Congress a year ago that it meant to renegotiate NAFTA, critics note that it said it would enter talks with both Canada and Mexico.

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