U.S.-Canadian NAFTA Talks Stumble

The chances of a last-minute accord today for Canada to join a tentative trade pact between the U.S. and Mexico evaporated after President Donald Trump said any deal would be “totally on our terms.”

Trump made the remarks off the record to Bloomberg News, but they were picked up by the Toronto Star. Trump soon confirmed his statement in a tweet, adding that, “At least Canada knows where I stand!”

Trilateral talks to update the 24-year-old North American Free Trade Agreement began a year ago. They stalled in June, then resumed as a bilateral negotiation between the U.S. and Mexico in July. The two countries announced a tentative pact on Monday.

The likelihood of agreement today with Canada was low to begin with, since the country wasn’t invited back into the negotiations until Monday. Envoys from both sides say they will continue to work on a mutually beneficial accord.

Trump is expected to send a letter to Congress by the end of today stating that he still aims to sign a three-way pact that would rename NAFTA by the end of November. Doing so triggers a 90-day notice he is legally required to provide Congress ahead of signing an agreement.

Reports say there are two major sticking points between the U.S. and Canada. One is Canada’s desire to continue the trade dispute mechanism in the current North American Free Trade Agreement. The second is the Trump administration’s demand for greater access to Canada’s dairy market.