Trump sees deal with Canada minus Mexico

Trump sees deal with Canada minus Mexico

Trump sees deal with Canada minus Mexico

The Trump administration will move forward with an aggressive rules-of-origin proposal for autos and auto parts that will target 50 percent USA content requirement and 85 percent (up from 62.5 percent) regional content, sources say, when negotiations resume this week. "It's possible we won't be able to reach a deal with one or the other, but in the meantime we'll make a deal with one".

Asked during his appearance with Trudeau whether NAFTA was dead, Trump said, "We'll see what happens".

It's no secret that the president is not a fan of NAFTA, but Wednesday's remarks suggested he's open to the possibility of a bilateral trade deal with Canada. "We'll see if we can do the kind of changes that we need".

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It wasn't clear whether the change in the prime minister's NAFTA message was a direct result of his meeting with the USA president, someone he acknowledged "makes decisions that surprise people sometimes".

"We all want this agreement to be a model for future trade deals", Brady said. "We have to protect our workers, and in all fairness, the prime minister wants to protect Canada and his people also".

Mexico's foreign relations secretary, Luis Videgaray, said Tuesday his country won't accept "limited, managed trade", an apparent reference to demands for higher USA and regional content rules on products like auto parts.

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The proposals call for North American content overall to rise to 85 per cent from the current 62.5 per cent.

The trade negotiations this week in Washington have gotten off to a rocky start, with the US Chamber of Commerce warning that the Trump administration might be sabotaging the talks with unrealistic proposals.

He blasted Trump for his "undue emphasis" on reducing the United States' US$64 billion trade deficit with Mexico.

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"We have to be prepared to say no, and if necessary to get up from the table and if necessary leave the treaty", Videgaray said, adding, "It would not be the end of the world".

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