Clock ticks down on potential Sunday NAFTA deadline

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Canada's ambassador to Washington says the US and Canada have made a lot of progress in free trade talks but there is no deal.

"Everybody's negotiating in good faith right now as we speak".

Trump complained about the behavior of Canadian officials, and said he rejected a meeting with Prime Minister Justin Trudeau, although Trudeau's office said no meeting was planned.

Canada has remained resistant to some of the US demands including wider access to the Canadian dairy market and eliminating a dispute settlement mechanism.

Sources tell The Canadian Press an 11th-hour NAFTA deal has been reached that allows Canada to rejoin the trilateral trade pact. He blames the treaty for the loss of American manufacturing jobs and has repeatedly threatened to abandon the trade past signed in 1994, during the Clinton administration.

The original North America deal took years to negotiate and commerce between the U.S., Mexico and Canada has relied on the continuation of a trade accord, Falk added.

Among other things, the negotiators battled over Canada's high dairy tariffs.

One of the toughest obstacles was Canada's demand for an exemption or other form of protection from the president's tariffs on imported steel and aluminum, which may potentially be extended to automobiles from Canadian factories.

The news delighted financial markets that had fretted for months about the potential economic damage if NAFTA blew up.

US stock index futures also rose, with S&P 500 Index e-mini futures rising by more than 0.5 percent, suggesting the benchmark index would open near a record on Monday.

Any agreement requires the approval of both Trudeau and U.S. President Donald Trump.

Chapter 19, the dispute resolution mechanism, will be kept.

"Our focus remains on the substance of the issues, not on timelines, and of course on getting a good deal for Canadians".

The new NAFTA deal also came on the last day before a Trump-imposed deadline to reach an agreement.

When that text is finally released, it would be advisable to evaluate it in relation to the progressive principles outlined in the Trade: time for a new vision The Alternative Trade Mandate report.

More than two-thirds of Canadian exports go to the United States, equivalent to 20 percent of its Gross Domestic Product, while Canada is the largest export market for the United States.

Canada and the United Stares are also looking for a compromise on the issue of US tariffs.

The two nations signed a side letter allowing Washington to pursue tariffs on annual Mexican auto and SUV imports of over 2.4 million vehicles, a number that significantly exceeds last year's total.

If Trump imposes so-called "Section 232" autos tariffs on national security grounds, Mexico and Canada would each get a tariff-free passenger vehicle quota of 2.6 million passenger vehicles exported to the United States annually, well above their current export levels.

The US Congress is required go through a 60-day review of the draft agreement, which could potentially allow for NAFTA signing around December 1.

Those goals were achieved in the deal reached late Sunday, according to a Canadian official with knowledge of the negotiations.

The agreement with Canada and Mexico -- two of the United States' biggest trading partners -- fulfills President Donald Trump's campaign pledge to renegotiate NAFTA and avoids his threat to exclude Canada if the talks failed. They suspected that Canada, which had said it wasn't bound by USA deadlines, was delaying the talks until after provincial elections Monday in Quebec, where support for Canadian dairy tariffs runs high.