• Canada is trying to get to the "right place" by Friday to strike a deal.
  • However, Prime Minister Justin Trudeau warns he will not sacrifice getting the "right deal" for the country.
Trump is optimistic Canada and the US can strike a deal by the end of the week

Trump is optimistic Canada and the US can strike a deal by the end of the week

Talks with Canada to overhaul the current North American Free Trade Agreement (NAFTA) are progressing well with an optimistic President Trump saying a deal could be struck as early as this week.

Speaking to reporters at the White House yesterday (29 August), Trump said the two sides are "doing really well" with regards to negotiating a new agreement, adding Canada "wants to be part of the deal".

On Tuesday, Trump announced a preliminary agreement regarding a new trade accord with Mexico had been struck - a deal that could potentially replace NAFTA.

The US, Canada, and Mexico have been working to renegotiate and modernise the 24-year-old trade pact since last summer, with the most recent round of talks held in Mexico City in March.

Now, according to an article published yesterday by Bloomberg, Trump says he has given Canada until Friday (31 August); a deadline he says the two sides are "probably" on-track for.

Meanwhile, Canadian Prime Minister Justin Trudeau says that while his government is trying to reach an agreement with the US this week, he will not sacrifice getting the "right deal" for the country.

"We're seeing if we can get to the right place by Friday," Trudeau reportedly told the media at a press conference in northern Ontario yesterday. "We're going to be thoughtful, constructive, creative around the table but we are going to ensure that whatever deal gets agreed to is the right deal for Canada and the right deal for Canadians."

According to Bloomberg, the US is pressuring Canada to strike a deal by the end of the week as that is when the Trump administration plans to inform Congress that the President intends to sign a new trade pact with Mexico in 90 days that would replace NAFTA.

The new deal with Mexico, coined by Trump as the United States-Mexico Trade Agreement, aims to create more balanced, reciprocal trade that supports high-paying jobs for Americans and grows the United States and Mexican economies.

It also includes stronger textile provisions than the original trade pact that are designed to incentivise greater US and Mexican production in textiles and apparel trade.

The suggestion that it may replace NAFTA has been met with criticism from US retailers, however, with Matthew Shay, CEO of the National Retail Federation (NRF), noting that while the US coming to terms with Mexico is an encouraging sign, threatening to pull out of the existing agreement is not.