Canada PM says won't be rushed on NAFTA, new deal not guaranteed

This will also mean that the United States can impose 25 percent tariffs on Canada's auto and dairy imports and exports.

U.S. and Canadian negotiators have spent more than a month trying to resolve remaining differences after Washington sealed a tentative deal with Mexico City which they intend to sign by December 1, when a new government takes office.

Trump's comments also come on the heels of his national security adviser John Bolton's suggestion that Canadian requests for a bilateral meeting "couldn't be accommodated" - although officials in the Prime Minister's Office insisted no such request had been made.

"If Canada doesn't make a deal with us, we're going to make a much better deal".

The US and Canada are basically out of time to iron out their differences in a trade agreement before the Sept 30 deadline to have a completed full text.

"If we push it beyond that date, then we have a new negotiation with Lopez Obrador and we don't know where that would go at all", Lighthizer said.

Canadian Prime Minister Justin Trudeau, who spoke at the sidelines of the event hosted by the Council on Foreign Relations in NY, had also sent mixed signals.

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Canada is looking for a way to reach a deal Trump can hail as a triumph, MacNaughton said. He has invoked Section 232, a previously obscure provision in US trade law that allows the president to levy tariffs for "national-security" reasons.

Canadian officials have said, on condition of anonymity, that they are pushing for tariff protection to be part of the deal.

Trump said he does not have a good relationship with Canada's diplomatic delegation, including foreign minister Chrystia Freeland.

Mr. Trump again hammered Canada's dairy market on Wednesday, attacking the "300-per-cent tariffs" that keep US imports out of the Canadian market. "It's been long and exhausting, but I think we've narrowed the gap".

The auto industry is key to Nafta and the free trade deal is critical to the North American supply chain.

Negotiations for possible exemptions for Mexico and Canada from US steel and aluminum tariffs imposed earlier this year will take place after the new Nafta deal is agreed on, Lighthizer said. "I think our view is now we'll turn to that as a next stage". "It was an interaction like so many are in the United Nations - quick but cordial".

If differences with Ottawa can not be resolved by then, the Trump administration will ask Congress to approve a Mexico-only deal, he said. "There are all sorts of opportunities for me to speak to President Trump, and that was not the time".

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