Talks between the U.S. and Canada on a potential post-NAFTA trade deal extended beyond the self-imposed deadline set for today, Friday Aug. 31.
This comes after the U.S. closed a bilateral deal with Mexico on Monday to replace the North American Free Trade Agreement, which was a major point of contention for US President Donald Trump during both his campaign and presidency.
Shortly after the US and Mexico closed a deal, both President Trump and Canadian Prime Minister Justin Trudeau expressed tepid optimism about closing a trade deal, and both leaders set Friday as a tentative deadline for negotiations.
PM Trudeau said of the deal, “We recognize that there is a possibility of getting there by Friday, but it is only a possibility, because it will ultimately hinge on whether there is ultimately a good deal for Canada.”
Despite no deal being reached by the Friday deadline, both nations seem optimistic about the prospect of reaching a deal in the near future.
Speaking at the conclusion of talks on Friday, Canadian Foreign Affairs Minister Chrystia Freeland said, “we’ve made good progress [on trade talks], but there’s still work to be done.”
In a statement released Friday, U.S. Trade Representative Robert Lighthizer declared “today the President notified the Congress of his intent to sign a trade agreement with Mexico – and Canada, if it is willing – 90 days from now.”
Regarding Canada specifically, Lighthizer said “our officials are continuing to work toward agreement. The USTR team will meet with Minister Freeland and her colleagues Wednesday of next week.”
Although both sides remain optimistic, off-the-record comments from President Trump indicate that the US side is unwilling to compromise, which could further delay the negotiations.
It is reported that the main sticking points in the negotiations are dairy tariffs and Chapter 19 of NAFTA, which allows companies that feel unfairly targeted by tariffs to request an arbitration.