No NAFTA deal, talks to resume next week

Talks to keep Canada in a North American trade bloc broke up Friday and will resume next week with the two longtime allies divided over such issues as Canada's dairy market and US efforts to shield drug companies from generic competition.

President Donald Trump notified Congress on Friday that he plans to sign an agreement in 90 days with Mexico to replace the North American Free Trade Agreement – and hopes Canada can brought on board, too.

The US and Mexico reached a deal on Monday that excluded Canada, the third NAFTA country. The top Canadian trade envoy, Foreign Affairs Minister Chrystia Freeland, then hurried to Washington for talks aimed at preserving Canada's membership in the regional trade agreement.

But Freeland couldn't break an impasse in four days of negotiations with US Trade Representative Robert Lighthizer. The US-Canada talks will resume on Wednesday.

The negotiations took an odd turn for the worse Friday over news that President Donald Trump had told Bloomberg News that he wasn't willing to make any concessions to Canada. Trump wanted the remarks to remain off-the-record; otherwise, the president said, "it's going to be so insulting they're not going to be able to make a deal."

Freeland tried to brush off the controversy in a news conference. "My negotiating counterparty is Ambassador Lighthizer," she said. "He has brought good faith and good will to the table."

Freeland expressed confidence that Canada could reach a deal with the United States on a revamped trade accord that could please all sides.

"We know a win-win-win agreement is within reach," she said.

However, she repeated that Canada will only sign an agreement that is in its interests.

Officials are due to reconvene on Wednesday.

"We'll keep talking until we reach a good deal," she said.

US Trade Representative Robert Lighthizer's office also issued a statement, saying the negotiations over the past four days were "constructive, and we made progress.

"Our officials are continuing to work toward agreement. The USTR team will meet with Minister Freeland and her colleagues Wednesday of next week," said the statement.

Lighthizer said the White House had informed Congress Friday that it intends to sign a new free trade deal with Mexico – and possibly with Canada – within 90 days.

He said the agreement will have "huge benefits for our workers, farmers, ranchers, and businesses."

TRT World's Lionel Donovan has more on whether a deal can be reached.