Justin Trudeau says Canadians are tough negotiators

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Trudeau said "a good, fair deal is still very possible".

Three of the major outstanding issues between Canada and the U.S.in NAFTA talks leading up to this week were Section 232 national security tariffs, NAFTA's Chapter 19 dispute resolution mechanism, and regulations around Canada's dairy sector.

Mexican Senator Ricardo Monreal said on Twitter the text would be released simultaneously in Mexico and the United States. "That you can be sure of", Lopez Obrador told reporters in Mexico City.

U.S. Trade Representative Robert Lighthizer has argued that the United State would have to reopen negotiations with the new Mexican government if the deadline is missed, but Lopez Obrador's comments appear to call that into question.

'That means the negotiations aren't over yet, ' he said.

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With little time left ahead of a deadline to agree to a renewed NAFTA, Canadian and USA trade officials on Sunday tried to settle differences on tough issues such as protection against American tariffs.

As of Saturday morning, the minister was still in Canada.

The text will flesh out an agreement in principle reached by the United States and Mexico on August 27 that aims to rebalance automotive trade between the two countries and modernize the almost 25-year-old NAFTA with new chapters on digital trade, stronger labor and environmental standards. The United States has said that Mexico agreed to eliminate a system of settlement panels to arbitrate disputes over anti-dumping and anti-dumping tariffs. Would it be limits to USA takeover of Canadian companies?

The White House wants his side to sign the new Nafta negotiated with Mexico prior to the taking of office of Mr. Lopez Obrador, the beginning of December.

"Canadians are tough negotiators, as we should be", Trudeau fired back. The U.S. president stayed seated as he extended his hand for a cursory handshake.

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Mr. Trump is using potential tariffs on all auto and auto parts imported into the U.S.as a negotiating hammer, not only with Canada but also with the E.U., Japan and other countries, Height Capital analyst Clayton Allen wrote in a note. Negotiators are racing against the clock because of a US-set deadline.

Mexico agreed to ensure that 75 percent of automotive content will be produced within the trade bloc, up from a current 62.5 percent, to receive duty-free benefits.

One solution might be to imitate the provisions of the bilateral Mexico-U.S. deal on NAFTA. President Donald Trump has threatened auto tariffs in the event a deal can't be reached. In 2004, the Dominican Republic signed a Central American trade deal three months after the USA and several of its neighbors signed.

Ultimately, Ujczo said he expects Canada and the U.S.to reach a so-called "side letter" to the main deal that would resemble a similar agreement reached last month between Mexico and the USA, which preserves duty-free access to the US market for vehicles that comply with the agreement's rules of origin. Mexican-made products were hit by both of those actions aimed at protecting USA producers from import surges.

"It's a challenging task to figure that out and they're spending a lot of time on that right now", said the third Canadian source.

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