<a href="http://www.wionews.com/world/watch-us-gives-russia-60-days-to-comply-with-nuclear-treaty-181666">US President Donald Trump</a> said on Saturday he would soon give formal notice to the US Congress to terminate the North American Free Trade Agreement (NAFTA), giving lawmakers six months to approve a new trade deal between the United States, Mexico and Canada to replace it.

Trump said that if US lawmakers don't approve the new agreement, then the three countries would revert to the rules of trade that existed before NAFTA came into effect in 1994.

It is unclear if Trump has the legal power to terminate NAFTA in the way he has threatened. The opposition Democratic party will soon have a majority in the lower house of Congress and has said it wants changes to the new trade deal, known as the USMCA.

Trump's threat raised fears that trade flows across North America could be disrupted if Congress fails to agree on the new deal before NAFTA expires.

WITH CANADA, TARIFF UNCERTAINTY

Under the 1987 Canada-United States Free Trade Agreement, the two countries agreed to phase out most tariffs, a process that accelerated under NAFTA. The deal excluded dairy, poultry, eggs and sugar, but virtually all other tariffs were phased out by 2008. That means terminating NAFTA could have a limited impact on the movement of goods between the two countries.

But some trade experts have argued that because the agreement was formally suspended when NAFTA went into effect, both governments would have to take steps to put it back into force. If the old deal is not reinstated, a vast array of goods made in the United States and Canada would be subject to tariffs and cost more.

HIGHER DUTIES IN US-MEXICO TRADE

If NAFTA is terminated, goods traded between Mexico and the United States would attract "most-favoured-nation" or MFN tariffs, levied under World Trade Organization rules. That would raise prices of goods traded across the two countries.

While average MFN tariffs are relatively low, there is great variation between sectors. In the United States, duties are highest for clothing, according to the Pew Research Center, averaging 18.7 per cent or 15.8 per cent depending on whether the garment is knitted or crocheted. Vegetables face an 8.4 per cent duty.

Mexico's highest average MFN tariffs are on agricultural products - 21.4 per cent on dairy products, and 16.7 per cent on animal products, WTO data show. That could hurt US farmers who export to Mexico. The US poultry sector, which exports products worth more than $1 billion a year to Mexico, has warned that it could be hit hard.

WORK PERMIT CHANGES

NAFTA created special visas that give skilled workers such as software developers the ability to move between Canada, the United States and Mexico with relative ease. Ending the deal would be a blow to those workers and could create new costs and red tape for the businesses that want to hire them.

DISPUTE SETTLEMENT

The United States and other countries often protect local industries from cheap imports with anti-dumping duties, special tariffs that are allowed under international law when foreign companies are selling goods below their true market value. But market value is often a subject of debate.

That's why Canada insisted that NAFTA include a dispute settlement mechanism that makes it possible to challenge anti-dumping duties in front of a bi-national panel, not just in local courts. Terminating NAFTA would end this system, potentially exposing companies in all three countries to more anti-dumping duties.

INVESTMENT RESTRICTIONS

NAFTA reduced investment restrictions in a number of sectors, creating opportunities for businesses to move outside their home countries.

Canada's Bank of Nova Scotia, for example, now has substantial operations in Mexico and lobbied hard to for a NAFTA deal, meeting with governments and businesses in both countries.

US President Donald Trump said on Saturday he would soon give formal notice to the US Congress to terminate the North American Free Trade Agreement (NAFTA), giving lawmakers six months to approve a new trade deal between the United States, Mexico and Canada to replace it.

US President Donald Trump said on Saturday he would soon give formal notice to the US Congress to terminate the North American Free Trade Agreement (NAFTA), giving lawmakers six months to approve a new trade deal between the United States, Mexico and Canada to replace it. Trump said that if US lawmakers don't approve the new agreement, then the three countries would revert to the rules of trade that existed before NAFTA came into effect in 1994. It is unclear if Trump has the legal power to terminate NAFTA in the way he has threatened. The opposition Democratic party will soon have a majority in the lower house of Congress and has said it wants changes to the new trade deal, known as the USMCA. Trump's threat raised fears that trade flows across North America could be disrupted if Congress fails to agree on the new deal before NAFTA expires. WITH CANADA, TARIFF UNCERTAINTY Under the 1987 Canada-United States Free Trade Agreement, the two countries agreed to phase out most tariffs, a process that accelerated under NAFTA. The deal excluded dairy, poultry, eggs and sugar, but virtually all other tariffs were phased out by 2008. That means terminating NAFTA could have a limited impact on the movement of goods between the two countries. But some trade experts have argued that because the agreement was formally suspended when NAFTA went into effect, both governments would have to take steps to put it back into force. If the old deal is not reinstated, a vast array of goods made in the United States and Canada would be subject to tariffs and cost more. HIGHER DUTIES IN US-MEXICO TRADE If NAFTA is terminated, goods traded between Mexico and the United States would attract "most-favoured-nation" or MFN tariffs, levied under World Trade Organization rules. That would raise prices of goods traded across the two countries. While average MFN tariffs are relatively low, there is great variation between sectors. In the United States, duties are highest for clothing, according to the Pew Research Center, averaging 18.7 per cent or 15.8 per cent depending on whether the garment is knitted or crocheted. Vegetables face an 8.4 per cent duty. Mexico's highest average MFN tariffs are on agricultural products - 21.4 per cent on dairy products, and 16.7 per cent on animal products, WTO data show. That could hurt US farmers who export to Mexico. The US poultry sector, which exports products worth more than $1 billion a year to Mexico, has warned that it could be hit hard. WORK PERMIT CHANGES NAFTA created special visas that give skilled workers such as software developers the ability to move between Canada, the United States and Mexico with relative ease. Ending the deal would be a blow to those workers and could create new costs and red tape for the businesses that want to hire them. DISPUTE SETTLEMENT The United States and other countries often protect local industries from cheap imports with anti-dumping duties, special tariffs that are allowed under international law when foreign companies are selling goods below their true market value. But market value is often a subject of debate. That's why Canada insisted that NAFTA include a dispute settlement mechanism that makes it possible to challenge anti-dumping duties in front of a bi-national panel, not just in local courts. Terminating NAFTA would end this system, potentially exposing companies in all three countries to more anti-dumping duties. INVESTMENT RESTRICTIONS NAFTA reduced investment restrictions in a number of sectors, creating opportunities for businesses to move outside their home countries. Canada's Bank of Nova Scotia, for example, now has substantial operations in Mexico and lobbied hard to for a NAFTA deal, meeting with governments and businesses in both countries.

What happens if the US terminates NAFTA

US President Trump, <a href="http://www.wionews.com/world/canada-us-reach-deal-save-nafta-trilateral-trade-pact-168687">Canadian Prime Minister Justin Trudeau</a> and Mexican President Enrique Pena Nieto took part in the signing ceremony to approve the Mexico–Canada Agreement (USMCA) in Buenos Aires today ahead of the G20 summit.

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<a href="https://twitter.com/hashtag/USMCA?src=hash&amp;ref_src=twsrc%5Etfw">#USMCA</a>🇺🇸🇲🇽🇨🇦 <a href="https://t.co/7CYsYBYbd1">https://t.co/7CYsYBYbd1</a>
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The deal came about after over a year of negotiations between all three parties aimed at replacing&nbsp;the North American Free Trade Agreement(NAFTA). Canada had reached a deal at the last minute in September, Mexico had already struck a deal with the US earlier.

President Trump had personally pushed for the deal, however, it wasn't without its bottlenecks. Canadian Prime Minister Justin Trudeau had said working with Trump was "not always simple," during the renegotiation stage.

Mexican President-elect Andres Manuel Lopez Obrador had said he was putting Mexico first, saying the deal would be known in Spanish as "T-MEC," after conducting a poll of his Twitter followers.

"T-MEC stands for "Tratado Mexico-Estados Unidos-Canada" which translates as the Mexico-United States-Canada Treaty. More than 102,000 people participated in the poll on the social media site.

Canada, Mexico and the United States had reached the deal on September 30th.

The deal has made sweeping changes in manufacturing and labour requirements in the auto sector. According to the new deal, 75 per cent of auto content be made in the region, increased from 62.5 per cent, and that 40-45 per cent be made by workers earning at least $16 an hour.

Mexico, in turn, agreed to continue to recognise US auto safety standards. USMCA exempts Mexico and Canada autos up to a threshold of 2.6 million vehicles a year, including light trucks.

Canada on its part agreed to open its borders wider to American milk, cheese, cream, butter and other goods and allowed greater import of US chicken, eggs and turkey. The US agreed to keep Canada's demand for keeping Chapter 19 which involves the dispute settlement system.

Under the new agreement, the signatories also allowed equal copyright treatment for writers, composers and others from member countries.

The new agreement also prohibited customs duties for digitally distributed goods namely software and games, e-books, music and movies.&nbsp;

US President Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto took part in the signing ceremony to approve the Mexico–Canada Agreement (USMCA) in Buenos Aires today ahead of the G20 summit.

US President Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto took part in the signing ceremony to approve the Mexico–Canada Agreement (USMCA) in Buenos Aires today ahead of the G20 summit. #USMCA🇺🇸🇲🇽🇨🇦 https://t.co/7CYsYBYbd1 — Donald J. Trump (@realDonaldTrump) November 30, 2018 × The deal came about after over a year of negotiations between all three parties aimed at replacing the North American Free Trade Agreement(NAFTA). Canada had reached a deal at the last minute in September, Mexico had already struck a deal with the US earlier. President Trump had personally pushed for the deal, however, it wasn't without its bottlenecks. Canadian Prime Minister Justin Trudeau had said working with Trump was "not always simple," during the renegotiation stage. Mexican President-elect Andres Manuel Lopez Obrador had said he was putting Mexico first, saying the deal would be known in Spanish as "T-MEC," after conducting a poll of his Twitter followers. "T-MEC stands for "Tratado Mexico-Estados Unidos-Canada" which translates as the Mexico-United States-Canada Treaty. More than 102,000 people participated in the poll on the social media site. Canada, Mexico and the United States had reached the deal on September 30th. The deal has made sweeping changes in manufacturing and labour requirements in the auto sector. According to the new deal, 75 per cent of auto content be made in the region, increased from 62.5 per cent, and that 40-45 per cent be made by workers earning at least $16 an hour. Mexico, in turn, agreed to continue to recognise US auto safety standards. USMCA exempts Mexico and Canada autos up to a threshold of 2.6 million vehicles a year, including light trucks. Canada on its part agreed to open its borders wider to American milk, cheese, cream, butter and other goods and allowed greater import of US chicken, eggs and turkey. The US agreed to keep Canada's demand for keeping Chapter 19 which involves the dispute settlement system. Under the new agreement, the signatories also allowed equal copyright treatment for writers, composers and others from member countries. The new agreement also prohibited customs duties for digitally distributed goods namely software and games, e-books, music and movies.

G20 summit: Trump, Trudeau and Enrique Pena sign US-Mexico–Canada Agreement, replace NAFTA

The United States and Canada reached a deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, beating a midnight deadline with agreements to substantially boost American access to Canada's dairy market and protect Canada from possible US auto tariffs, sources with direct knowledge of the talks said.

President Donald Trump had threatened to splinter the nearly 25-year-old North American Free Trade Agreement into a bilateral pact with Mexico and tax Canadian vehicle exports to the United States if Ottawa had failed to sign on before a midnight Sunday deadline (0400 GMT Monday).

But Trump has approved the "framework" deal with Canada, a source familiar with the decision said, just days after he sharply criticized Canadian Prime Minister Justin Trudeau and his NAFTA negotiating team.

Trump blames NAFTA for the loss of American manufacturing jobs and wants major changes to the pact, which underpins $1.2 trillion in annual trade. Markets fear its demise would cause major economic disruption.

Negotiators from both sides spent two days talking by phone as they tried to settle a range of difficult issues such as access to Canada's closed dairy market and US tariffs.

The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from US anti-dumping tariffs, Canadian sources said.

But this came at a cost.

Canada had agreed to provide US dairy farmers access to about 3.5 per cent of its approximately $16 billion annual domestic dairy market, the sources said, adding that the Canadian government is prepared to offer compensation to dairy farmers hurt by the deal.

The influential Dairy Farmers of Canada lobby group - which strongly opposes the idea - said in a statement that it insisted "any final NAFTA deal should have no further negative impact on the dairy sector."

Canada also agreed to a quota of 2.6 million vehicles exported to the United States in the event that Trump imposes 25 per cent global autos tariffs on national security grounds, Canadian and US&nbsp;auto industry sources said.

The quota would allow for significant growth in tariff-free automotive exports from Canada above current production levels of about 2 million units, safeguarding Canadian plants.

But the deal failed to resolve US tariffs on Canada's steel and aluminum exports, the Canadian sources said.

"We celebrate the trilateral agreement. The door is closed to the fragmentation of the region," Jesus Seade, President-elect Andres Manuel Lopez Obrador's NAFTA negotiator said on Twitter. "NAFTA 2 will give certainty and stability to Mexican trade with its partners in North America."

The Canadian dollar and Mexican peso both rallied as word circulated that a trilateral deal had been hammered out. The loonie was up 0.60 per cent versus the greenback while the peso gained 0.80 per cent.

US&nbsp;stocks looked set to rally on the news. S&amp;P 500 Index e-mini futures were up 0.6 per cent, suggesting the benchmark index was on track to open the week back near record territory.

US business groups opposed turning NAFTA into a bilateral deal because the three nations' economies have become closely intertwined since the original pact came into force in 1994.

Officials have blown through several deadlines since the talks started in August 2017.

The United States and Canada reached a deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, beating a midnight deadline with agreements to substantially boost American access to Canada's dairy market and protect Canada from possible US auto tariffs, sources with direct knowledge of the talks said.

The United States and Canada reached a deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, beating a midnight deadline with agreements to substantially boost American access to Canada's dairy market and protect Canada from possible US auto tariffs, sources with direct knowledge of the talks said. President Donald Trump had threatened to splinter the nearly 25-year-old North American Free Trade Agreement into a bilateral pact with Mexico and tax Canadian vehicle exports to the United States if Ottawa had failed to sign on before a midnight Sunday deadline (0400 GMT Monday). But Trump has approved the "framework" deal with Canada, a source familiar with the decision said, just days after he sharply criticized Canadian Prime Minister Justin Trudeau and his NAFTA negotiating team. Trump blames NAFTA for the loss of American manufacturing jobs and wants major changes to the pact, which underpins $1.2 trillion in annual trade. Markets fear its demise would cause major economic disruption. Negotiators from both sides spent two days talking by phone as they tried to settle a range of difficult issues such as access to Canada's closed dairy market and US tariffs. The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from US anti-dumping tariffs, Canadian sources said. But this came at a cost. Canada had agreed to provide US dairy farmers access to about 3.5 per cent of its approximately $16 billion annual domestic dairy market, the sources said, adding that the Canadian government is prepared to offer compensation to dairy farmers hurt by the deal. The influential Dairy Farmers of Canada lobby group - which strongly opposes the idea - said in a statement that it insisted "any final NAFTA deal should have no further negative impact on the dairy sector." Canada also agreed to a quota of 2.6 million vehicles exported to the United States in the event that Trump imposes 25 per cent global autos tariffs on national security grounds, Canadian and US auto industry sources said. The quota would allow for significant growth in tariff-free automotive exports from Canada above current production levels of about 2 million units, safeguarding Canadian plants. But the deal failed to resolve US tariffs on Canada's steel and aluminum exports, the Canadian sources said. "We celebrate the trilateral agreement. The door is closed to the fragmentation of the region," Jesus Seade, President-elect Andres Manuel Lopez Obrador's NAFTA negotiator said on Twitter. "NAFTA 2 will give certainty and stability to Mexican trade with its partners in North America." The Canadian dollar and Mexican peso both rallied as word circulated that a trilateral deal had been hammered out. The loonie was up 0.60 per cent versus the greenback while the peso gained 0.80 per cent. US stocks looked set to rally on the news. S&P 500 Index e-mini futures were up 0.6 per cent, suggesting the benchmark index was on track to open the week back near record territory. US business groups opposed turning NAFTA into a bilateral deal because the three nations' economies have become closely intertwined since the original pact came into force in 1994. Officials have blown through several deadlines since the talks started in August 2017.

Canada, US reach deal to save NAFTA as trilateral trade pact

US President Donald Trump on Monday praised Canada's entry into a reworked trade deal with the United States and Mexico after the two countries forged a last-gasp agreement on Sunday to salvage the NAFTA.

In a post on Twitter, Trump called the US agreement with its neighbour to the north "wonderful" and "a great deal for all three countries," adding that the new trade alliance would be renamed the United States Mexico Canada Agreement or USMCA.

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Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many......
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1046708836407685122?ref_src=twsrc%5Etfw">October 1, 2018</a></blockquote>
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.....deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduce Trade Barriers to the U.S. and will bring all three Great Nations closer together in competition with the rest of the world. The USMCA is a historic transaction!
— Donald J. Trump (@realDonaldTrump) <a href="https://twitter.com/realDonaldTrump/status/1046711423227842560?ref_src=twsrc%5Etfw">October 1, 2018</a></blockquote>
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The United States and Canada reached a deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, beating a midnight deadline with agreements to substantially boost American access to Canada's dairy market and protect Canada from possible US auto tariffs, sources with direct knowledge of the talks said.

US President Donald Trump on Monday praised Canada's entry into a reworked trade deal with the United States and Mexico after the two countries forged a last-gasp agreement on Sunday to salvage the NAFTA.

US President Donald Trump on Monday praised Canada's entry into a reworked trade deal with the United States and Mexico after the two countries forged a last-gasp agreement on Sunday to salvage the NAFTA. In a post on Twitter, Trump called the US agreement with its neighbour to the north "wonderful" and "a great deal for all three countries," adding that the new trade alliance would be renamed the United States Mexico Canada Agreement or USMCA. Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many...... — Donald J. Trump (@realDonaldTrump) October 1, 2018 × .....deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduce Trade Barriers to the U.S. and will bring all three Great Nations closer together in competition with the rest of the world. The USMCA is a historic transaction! — Donald J. Trump (@realDonaldTrump) October 1, 2018 × The United States and Canada reached a deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, beating a midnight deadline with agreements to substantially boost American access to Canada's dairy market and protect Canada from possible US auto tariffs, sources with direct knowledge of the talks said.

Trump welcomes Canada's entry into trade pact with US, Mexico

The United States and Canada have told Mexico they could reach a compromise within 48 hours on keeping the updated North American Free Trade Agreement a three-country deal, the Mexican economy minister said Friday.

Speaking as he presented the Mexican Senate with the current US-Mexican agreement to update NAFTA -- which does not include Canada, the third member of the original deal -- Economy Minister Ildefonso Guajardo said Washington and Ottawa were making a "very serious," last-ditch attempt to bridge their differences.

"For the first time, we're seeing a real effort by both sides," he said.

"In the next 48 hours, we will know if we are going with a trilateral agreement."

Guajardo, Mexico's top negotiator for "NAFTA 2.0," insisted that even if no 11th-hour US-Canadian deal is reached, a three-way deal would still be possible at some point in the future.

But that would mean "going ahead with a bilateral agreement and then later defining what legal actions we would have to take to maintain the possibility of a three-way deal," he said.

A Canadian government source told AFP that Canada's top negotiator, Foreign Minister Chrystia Freeland, "is in constant communication with the Americans, both formally and informally."

The United States and Mexico want to push their deal through their respective legislatures before Mexican President-elect Andres Manuel Lopez Obrador takes office on December 1.

In the United States, there is a three-month timeframe for doing so -- meaning Congress must have the text of the deal by Sunday.

Tempers flare&nbsp;

US President Donald Trump has been pushing for a complete overhaul of the 25-year-old trade deal, which he says has been a "rip-off" for the United States.

In August -- more than a year into the negotiations -- the United States and Mexico announced they had reached a two-way deal, after breaking away for bilateral talks on their outstanding issues.

But the ensuing talks to incorporate Canada have stumbled.

According to the negotiators, Canada's insistence on a trade dispute provision and its protected dairy sector are the last major sticking points.

Ottawa is also seeking assurances that the United States will not, after signing a new NAFTA deal, turn around and hit Canada with punitive auto tariffs.

Tempers flared this week on both sides as the end-of-month deadline approached.

"We're not getting along with their negotiators," Trump said Wednesday of Canada.

"Canadians are tough negotiators, as we should be," Trudeau fired back.

"We won't sign a bad deal for Canada."

The politics are high-stakes on both sides: Trump needs to look strong heading into the US mid-term elections in November, while Trudeau does not want to be seen as caving with a general election looming next year.

'AMLO' upbeat&nbsp;

The man whose impending inauguration is responsible for the rush -- Mexican President-elect Andres Manuel Lopez Obrador -- downplayed the importance of the end-of-month deadline.

"There is no fatal date, there is still time to reach a deal," he told a press conference earlier Friday.

The leftist president-elect, a free-trade skeptic, had criticized NAFTA in the past. But his transition team played an active part in the recent negotiations, and he has firmly backed the US-Mexican deal -- which he wants Canada to join.

Lopez Obrador, widely known as "AMLO," said he had spoken by phone Thursday with Trudeau.

"He said the negotiations were very difficult, that it might not be possible (to reach a three-way deal), but that they (Canada) had made a proposal," he said.

He said there was a counter-proposal Friday from the United States.

"That means the negotiations aren't over yet," he said.

He reiterated his insistence that Mexico prefers to keep NAFTA a three-country deal.

But he said he considered the substance of the US-Mexican deal to be final, and that Mexico did not want to renegotiate points that had already been agreed with Washington.

"We don't want to put our economic future and our country's financial stability at risk," he said.

The United States and Canada have told Mexico they could reach a compromise within 48 hours on keeping the updated North American Free Trade Agreement a three-country deal, the Mexican economy minister said Friday.

The United States and Canada have told Mexico they could reach a compromise within 48 hours on keeping the updated North American Free Trade Agreement a three-country deal, the Mexican economy minister said Friday. Speaking as he presented the Mexican Senate with the current US-Mexican agreement to update NAFTA -- which does not include Canada, the third member of the original deal -- Economy Minister Ildefonso Guajardo said Washington and Ottawa were making a "very serious," last-ditch attempt to bridge their differences. "For the first time, we're seeing a real effort by both sides," he said. "In the next 48 hours, we will know if we are going with a trilateral agreement." Guajardo, Mexico's top negotiator for "NAFTA 2.0," insisted that even if no 11th-hour US-Canadian deal is reached, a three-way deal would still be possible at some point in the future. But that would mean "going ahead with a bilateral agreement and then later defining what legal actions we would have to take to maintain the possibility of a three-way deal," he said. A Canadian government source told AFP that Canada's top negotiator, Foreign Minister Chrystia Freeland, "is in constant communication with the Americans, both formally and informally." The United States and Mexico want to push their deal through their respective legislatures before Mexican President-elect Andres Manuel Lopez Obrador takes office on December 1. In the United States, there is a three-month timeframe for doing so -- meaning Congress must have the text of the deal by Sunday. Tempers flare US President Donald Trump has been pushing for a complete overhaul of the 25-year-old trade deal, which he says has been a "rip-off" for the United States. In August -- more than a year into the negotiations -- the United States and Mexico announced they had reached a two-way deal, after breaking away for bilateral talks on their outstanding issues. But the ensuing talks to incorporate Canada have stumbled. According to the negotiators, Canada's insistence on a trade dispute provision and its protected dairy sector are the last major sticking points. Ottawa is also seeking assurances that the United States will not, after signing a new NAFTA deal, turn around and hit Canada with punitive auto tariffs. Tempers flared this week on both sides as the end-of-month deadline approached. "We're not getting along with their negotiators," Trump said Wednesday of Canada. "Canadians are tough negotiators, as we should be," Trudeau fired back. "We won't sign a bad deal for Canada." The politics are high-stakes on both sides: Trump needs to look strong heading into the US mid-term elections in November, while Trudeau does not want to be seen as caving with a general election looming next year. 'AMLO' upbeat The man whose impending inauguration is responsible for the rush -- Mexican President-elect Andres Manuel Lopez Obrador -- downplayed the importance of the end-of-month deadline. "There is no fatal date, there is still time to reach a deal," he told a press conference earlier Friday. The leftist president-elect, a free-trade skeptic, had criticized NAFTA in the past. But his transition team played an active part in the recent negotiations, and he has firmly backed the US-Mexican deal -- which he wants Canada to join. Lopez Obrador, widely known as "AMLO," said he had spoken by phone Thursday with Trudeau. "He said the negotiations were very difficult, that it might not be possible (to reach a three-way deal), but that they (Canada) had made a proposal," he said. He said there was a counter-proposal Friday from the United States. "That means the negotiations aren't over yet," he said. He reiterated his insistence that Mexico prefers to keep NAFTA a three-country deal. But he said he considered the substance of the US-Mexican deal to be final, and that Mexico did not want to renegotiate points that had already been agreed with Washington. "We don't want to put our economic future and our country's financial stability at risk," he said.

US, Canada could reach new NAFTA deal in 48 hours: Mexico

US President Donald Trump said on Tuesday that a new NAFTA trade deal could be completed quickly, as ministers from Canada, Mexico and the United States prepared to meet later in the day to try to work out their differences and hash out an agreement.

"NAFTA, as you know, is moving along. They (Mexico) have an election coming up very soon. And it will be interesting to see what happens with that election," Trump said at a cabinet meeting briefly attended by reporters.

"But we`re doing very nicely with NAFTA. I could make a deal really quickly, but I`m not sure that`s in the best interests of the United States. But we`ll see what happens," he added.

Canadian Foreign Minister Chrystia Freeland, U.S. Trade Representative Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo are pressing for a quick deal to avoid clashing with Mexico`s July 1 presidential election. That will entail overcoming major differences on several U.S. demands.

Guajardo said that flexibility will be needed to reach an agreement on a revamped North American Free Trade Agreement deal. 
He also underscored that Mexico would not accept any U.S. tariffs on aluminium or steel, saying that a revised NAFTA should serve to settle the issue with its northern neighbour.

Asked by reporters if a deal was imminent, Guajardo said: "Any day that you start (to) walk towards a goal nobody can guarantee that you will achieve it, (it) depends on the commitment and flexibilities around the table."

Negotiators have said a new NAFTA could be possible by early May, and officials hailed progress on the key issue of new automotive sector rules last week.

"In the coming 10 days we can really have a new agreement in principle," said Moises Kalach, head of the international negotiating arm of the CCE business lobby, which represents the Mexican private sector at the NAFTA talks.

The three sides still need to iron out differences on content rules for autos, dispute resolution mechanisms and other issues.

"As soon as there is political will from the American government to go for a final deal, I think we can close this," Kalach told Mexican radio. "We`ve had all our (negotiating) teams in Washington for two weeks and we will continue working all this week, the weekend and into next week."

Guajardo also said there was no need for a separate deal with the United States on steel and aluminium by May 1 when the current exemption on U.S. tariffs expires.

"I think whatever we do has to take into account the kind of commitment that we`re going to do in NAFTA, and definitely, Mexico has been very clear: we will not accept any type of restrictions in aluminium or steel," he said.

Last month, Trump pressed ahead with import tariffs of 25 percent on steel and 10 percent for aluminium but exempted Canada and Mexico and offered the possibility of excluding other allies.

"NAFTA, as you know, is moving along. They (Mexico) have an election coming up very soon.," Trump said.

US President Donald Trump said on Tuesday that a new NAFTA trade deal could be completed quickly, as ministers from Canada, Mexico and the United States prepared to meet later in the day to try to work out their differences and hash out an agreement. "NAFTA, as you know, is moving along. They (Mexico) have an election coming up very soon. And it will be interesting to see what happens with that election," Trump said at a cabinet meeting briefly attended by reporters. "But we`re doing very nicely with NAFTA. I could make a deal really quickly, but I`m not sure that`s in the best interests of the United States. But we`ll see what happens," he added. Canadian Foreign Minister Chrystia Freeland, U.S. Trade Representative Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo are pressing for a quick deal to avoid clashing with Mexico`s July 1 presidential election. That will entail overcoming major differences on several U.S. demands. Guajardo said that flexibility will be needed to reach an agreement on a revamped North American Free Trade Agreement deal. He also underscored that Mexico would not accept any U.S. tariffs on aluminium or steel, saying that a revised NAFTA should serve to settle the issue with its northern neighbour. Asked by reporters if a deal was imminent, Guajardo said: "Any day that you start (to) walk towards a goal nobody can guarantee that you will achieve it, (it) depends on the commitment and flexibilities around the table." Negotiators have said a new NAFTA could be possible by early May, and officials hailed progress on the key issue of new automotive sector rules last week. "In the coming 10 days we can really have a new agreement in principle," said Moises Kalach, head of the international negotiating arm of the CCE business lobby, which represents the Mexican private sector at the NAFTA talks. The three sides still need to iron out differences on content rules for autos, dispute resolution mechanisms and other issues. "As soon as there is political will from the American government to go for a final deal, I think we can close this," Kalach told Mexican radio. "We`ve had all our (negotiating) teams in Washington for two weeks and we will continue working all this week, the weekend and into next week." Guajardo also said there was no need for a separate deal with the United States on steel and aluminium by May 1 when the current exemption on U.S. tariffs expires. "I think whatever we do has to take into account the kind of commitment that we`re going to do in NAFTA, and definitely, Mexico has been very clear: we will not accept any type of restrictions in aluminium or steel," he said. Last month, Trump pressed ahead with import tariffs of 25 percent on steel and 10 percent for aluminium but exempted Canada and Mexico and offered the possibility of excluding other allies.

Trump says new NAFTA deal could be completed quickly

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