Trump advisers press for dairy concessions ahead of Freeland's arrival

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President Donald Trump has been negotiating with the U.S.'s neighbors to the north and south. Mexico, the USA, and Canada have been trying to negotiate a new trade deal for about a year. And I think that we're going to look closely at some of the other things that have been agreed to between the USA and Mexico and see just whether or not they can be made to work in the Canadian context.

Trump imposed a Friday deadline for Canada to join the USA and Mexico, which is when the administration plans to give Congress its mandatory 90-day notification of the new trade deal.

To get to a deal, Canada is under pressure from the U.S.to compromise on key issues - from opening access to its protected dairy sector, to getting rid of NAFTA's dispute settlement system, to introducing a clause that would call for the deal to be renegotiated again every 16 years.

"Given the encouraging announcement today of further bilateral progress between the USA and Mexico, Minister Freeland will travel to Washington, D.C., tomorrow to continue negotiations", her spokesman said.

It is the first time Freeland has met with her US counterparts in Washington since May.

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US Treasury Secretary Steven Mnuchin said on Tuesday that progress in the US-China trade talks was not likely until trade issues with Europe and America's two closest neighbours are resolved.

"If Canada signs on to a deal, which is our base case (even if timing is fuzzy), expect the loonie to appreciate further".

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Mexico's President Enrique Pena Nieto and President-elect Andres Manuel Lopez Obrador both said NAFTA should remain a trilateral deal. "This is not part of the negotiating strategy or anything", the official said.

Friday is when Lighthizer will send a letter to Congress, which starts a 90-day clock for lawmakers to look over the agreement for ratification. "We gave till Friday, and I think we're probably on track". Trump told reporters at the White House.

Canadian Foreign Minister Chrystia Freeland engaged in trade talks in D.C. on Tuesday, after a trade agreement between the USA and Mexico was announced on Monday.

One of the issues for Canada in the revised deal is the USA effort to dump the Chapter 19 dispute resolution mechanism that hinders the United States from pursuing anti-dumping and anti-subsidy cases.

Will she be presiding over the death of the 24-year-old continental trade pact? "The appearance of Canada as an irrelevant after-thought in NAFTA is a US frame designed exclusively to wrestle concessions from the Canadian side", says Adam Taylor.

"Talks with Canada potentially could change the terms of this agreement as the U.S., Canada, and Mexico try to achieve a trilateral understanding", Sklar said. On Tuesday, Trudeau said he would defend Canada's dairy farmers.

The crucial phase of talks began Tuesday continuing late into the night, and Trudeau expressed optimism the countries could reach agreement by the end of the week. What's the rollback in the other areas, and what does Mexico think they agreed to? While nothing can be taken for granted with Trump, they provided some insight into USA administration's thinking moving forward.

But Ottawa could offer U.S. dairy farmers a small increase in market share as it did with the European Union in a free trade pact previous year, in exchange for United States concessions on the NAFTA chapter on dispute resolution. If after the review there is no consensus to renew, a review will be conducted every year until disagreements can be worked out and the parties agree to then renew for another 16 years.

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