Two reasons why a NAFTA deal could be imminent

Before heading in to meet with U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMcConnell urges GOP senators to call Trump about tariffs Companies brace for trade war MORE, Canadian Foreign Minister Chrystia Freeland told reporters that the U.S. and Canada had worked over the weekend and she was looking forward to constructive talks.

Freeland stuck to her mantra of not wanting to negotiate in public - an agreement struck with the tough-talking Lighthizer as an act of good faith.

The uptick, however, seemed lacking any strong follow-through as investors now seem to refrain from placing any aggressive bets ahead of today's key event risk - the latest BoC monetary policy update, due to be announced later during the early North-American session.

Perhaps more than anything else, it is Trump's stated willingness to conclude a bilateral deal with Mexico that leaves Canada out that alarms supporters of the North American partnership.

"We're not saying we don't want to move swiftly to try and get a deal".

"We've said from the very beginning that we need a dispute resolution mechanism like Chapter 19 and we will hold firm on that", Trudeau said in Vancouver on the eve of the resumption of talks with the United States. The chapter allows companies to have their differences settled by independent arbiters - something Trump views as an infringement of US sovereignty.

Mexican and US officials have invited Canada to rejoin the talks, and Mexican and Canadian authorities act as though Canada will rejoin negotiations as a "third partner", but make no mistake - Canada will be negotiating with the USA and, in light of the president's complaints about Canadian dairy tariffs, the highest hurdle will be Canada's supply management programs. "He made some important comments".

USA officials did not comment after Wednesday's meeting, which came after Trump said he was willing to dump Canada from the $1.2 trillion three-country trade pact after he reached agreement with Mexico last week.

For much of the past week, Canada has been a punching bag for Trump.

Sources familiar with Canada's bargaining position insist Ottawa's push to maintain the cultural exemption has remained unresolved between the two neighbours.

She said it was never brought up except in one context: pushback by Americans who complained about the Canadian regulator's decision to end the practice of swapping out American ads for Canadian ones in the big broadcast, a decision that undercut the National Football League and Superbowl producers' ability to sell ads at a higher price.

More than two-thirds of Canadian exports go to the United States, equivalent to 20 percent of its GDP, while Canada is the largest export market for the United States.

"It is inconceivable to Canadians that an American network might buy Canadian media affiliates, whether it's newspapers or TV stations or TV networks", he said.

Commercial trucks exit the highway for the Bridge to Canada, in Detroit, Michigan U.S. August 30, 2018. "The United States is exploring avenues to address these concerns", Lighthizer wrote.

The Trump administration on Friday notified Congress that it intended by the end of November to sign a new trade deal "with Mexico - and with Canada if it is willing".

US President Donald Trump has threatened to push ahead with a bilateral deal with Mexico, effectively killing the nearly 25-year-old three-country Nafta pact, which covers US$1.2 trillion in trade.

Poloz has raised the rate four times since mid-2017 and his most-recent quarter-point increase came in July.

  • Anthony Vega