NAFTA agreement possible by Trump’s Friday deadline, says Justin Trudeau

'No NAFTA deal is better than a bad NAFTA deal,' says the Canadian prime minister

Justin Trudeau (AFP/Getty)

Justin Trudeau has said that Canada may be able to negotiate a deal on the North American Free Trade Agreement (NAFTA) by Donald Trump’s Friday deadline.

The Canadian prime minister said it is a “possibility” that Canada will reach an agreement by the end of the week, amid Mr Trump’s recent announcement on Monday that the US and Mexico had reached a preliminary deal.

“We recognise that there is a possibility of getting there by Friday, but it is only a possibility, because it will hinge on whether or not there is ultimately a good deal for Canada,” Mr Trudeau said at a press conference. “No NAFTA deal is better than a bad NAFTA deal.”

Mr Trump had threatened that the US would move forward with its deal with Mexico alone, and impose tariffs on Canada should the nation not come on board with the revised trade negotiations.

However, Mr Trump sounded more upbeat speaking outside the White House on Wednesday.

“They (Canada) want to be part of the deal, and we gave until Friday and I think we're probably on track. We'll see what happens, but in any event, things are working out very well,” Mr Trump said.

The upbeat tone contrasted with Trump's harsh criticism of Canada in recent weeks, railing on Twitter against Canada's high dairy tariffs that he said were “killing our Agriculture!”

Canadian Foreign Minister Chrystia Freeland said Canada was “optimistic” about negotiations for the 24-year-old trilateral deal.

“We are encouraged by the progress that the U.S. and Mexico made on some of their key bilateral issues,” she said. “On that basis we are optimistic about having some good productive discussions this week.”

Canada’s dairy protections for its farmers and the high tariffs imposed on imports could be a sticking point in US-Canada negotiations.

The preliminary agreement between the US and Mexico would require 75 per cent of car parts to be produced in the US, requiring that 40 to 45 per cent of auto content be made by workers who make $16 per hour.

Ms Freeland said Mexico’s concessions are “really going to be important for workers in Canada and the United States”.

The US Congress has 90 days to review the deal after being notified by the Trump administration.