Would Trump’s 20% auto tariff be Canada’s ’ruination’? We assess the damage

Gold catches late NY bid on NAFTA headlines, but . . .

Mulroney, the former prime minister widely considered the father of the modern era of North American free trade, held court Tuesday in Ottawa on the fate of the intercontinental trade pact as talks to modernize NAFTA resumed on the anniversary of the September 11 terrorist attacks.

Prime Minister Justin Trudeau, speaking at the Women in the World summit, was circumspect about the talks, saying only that he remains hopeful.

"Even if we gave him everything he wanted - and there is no way we would ever do that - who can say whether he'd be satisfied?" said one source, who declined to be identified given the extreme sensitivity of the situation.

Speaking on C-SPAN, Perdue said USA farmers don't have the same access to Canada that Canada has to the US, specifically referring the Class 7 dairy products in Canada.

"There is not going to be a deal - period - unless there is a compromise in that area because that is what he campaigned on and it's stuck to him and he's stuck with it", Mulroney said.

Canada's parliament unanimously condemned the personal attacks on Trudeau on Monday, as the famously polite nation simmered over the United States weekend broadsides. "I can't read the tea leaves, but. coming back and saying, "Sorry, we couldn't get an agreement" is just too hard politically to manage" on both sides, Sosnow said.

Data released on Wednesday showed the USA trade deficit hit a five-month high of $50 billion. Perdue says: "Class 7 has got to go".

"Maybe that helps us all put into perspective the negotiations that we're having and put into historical significance the relationship between Canada and the United States", Freeland said.

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"He has great confidence and trust in Lighthizer".

A spokesman for Freeland said on Monday that no decisions on whether she would return to Washington later this week had been made. Eares are on the ground for U.S. and China developments but at the fore again was the NAFTA negotiations.

She pointed to the 17th anniversary of the 9/11 attacks as a reminder of the need for close cooperation between Ottawa and Washington.

"At the end of the day, we're neighbors", Freeland said.

Trump has claimed that the 1994 pact has caused the loss of hundreds of thousands of U.S.jobs, something that most economists dispute. "He's railed against this thing (NAFTA) and they've been at the negotiating table for now over a year. Canada and the USA are too intertwined", Graves said.

Washington had already reached a NAFTA agreement with Mexico in late August and has informed Congress it intends to sign a new treaty by November 30, including Canada if possible.

Ottawa and Washington are hoping to strike an agreement that could be submitted to the U.S. Congress by month's end and would see Canada join a preliminary trade deal the Trump administration reached last month with Mexico. "The longer term is not almost as clear", said Ekos pollster Frank Graves."Trade wars are never good for the respective combatants and if this escalates it could have very deleterious economic impacts".

Trump sounded a more upbeat note earlier, and said he expected to know whether a deal could be struck to include Canada in the next few days.

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