"The reality is, there was a bilateral agreement reached between Mexico and the United States and we weren't at the table".
Canadian Prime Minister Justin Trudeau and US President Donald Trump had a "constructive conversation" about trade after Washington and Mexico City agreed on a revamped deal, Trudeau's office said Monday, August 27, 2108, on the eve of fresh negotiations. It was her first in-person NAFTA meeting with Lighthizer since the spring.
Freeland, who later met with Mexican officials on Tuesday evening, said she is due to dig into detailed discussions with Lighthizer on Wednesday.
The deal would require 75 percent of auto content to be made in the NAFTA region, up from the current level of 62.5 percent, a USA trade official said. "The new agreement will push production costs higher on Mexican products - parts and vehicles - which will eventually be paid for by American consumers".
After Trump said he would terminate the NAFTA deal and make a new bilateral trade agreement with Mexico, Canada is now left out in the cold in North American trade relations.
It is the first time Freeland has met with her USA counterparts in Washington since May. "The appearance of Canada as an irrelevant after-thought in NAFTA is a USA frame designed exclusively to wrestle concessions from the Canadian side", says Adam Taylor. They've been treated very, I would say, in a rough manner by Canada.
"I have said that is not acceptable to us". "It's a must-have", said Welles Orr, a senior global trade adviser at Miller and Chevalier, and a former Assistant U.S. Trade Representative.
Trudeau also said he would continue to defend supply management.
The White House said Mr Trump will sign the deal in 90 days.More news: Serena Williams Creates Vegan Clothing Line to Empower Women
Two key issues for the US and Canada are dairy and anti-dumping dispute panels.
Videgaray Caso's declaration via social media came in response to Trump's remarks earlier in the day when he told reporters at the White House that Mexico will "easily" pay for a wall along the U.S. -Mexico border. It would be a lot easier to do so with Canada, since USA lawmakers might fight the Trump administration if it tries to push ahead with only Mexico. "We're not going to stand for that", he said. They also note that while certain sectors of US manufacturing were hurt by NAFTA, American consumers and companies - and workers in some industries, like agriculture - benefited from it. NAFTA had "a bad connotation", he said.
The agreement would last 16 years, with an opportunity to review it and adjust the terms after six years.
Trump, who has called NAFTA a "rip off" for the US, called Monday's announcement a big win.
He then delivered his ultimatum to Canada.
"One way or the other, we have a deal with Canada", Trump said from the Oval Office, where he was joined on a speaker phone by Mexican President Enrique Pena Nieto.
Monday's announcement lifted equity markets in all three countries, with shares in automotive companies standing out on relief that the deal appeared to end the uncertainty that has dogged the sector for months.
Trump lauded the new deal as landmark in U.S.co-operation with Mexico, and he made it clear the two countries will proceed with their pact, with or without Canada.
Mexico would like to seal a new trade agreement before the incoming government of president-elect Andres Manuel Lopez Obrador takes office December 1.