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U.S. and Canada End Friday Without Reaching a Deal on New NAFTA

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(Bloomberg) — Talks between the U.S. and Canada ended Friday without a deal on a new North American Free Trade Agreement, but discussions are expected to continue next week, according to a person familiar with the matter.

Canadian Foreign Affairs Minister Chrystia Freeland is expected to brief reporters at 4:30 p.m. local time on Friday at the Canadian Embassy in Washington, according to a Canadian government statement.

Freeland has been in Washington since Tuesday in an accelerated push to reach an agreement with the U.S. over revamping Nafta. The Trump administration had given Canada until Friday to join a preliminary deal it reached earlier in the week with Mexico or risk being left out.

The Wall Street Journal reported earlier that the U.S. intends to notify Congress on Friday that it’ll proceed with changes to Nafta with Mexico, and that it remains open to continuing negotiations with Canada.

Canadian Prime Minister Justin Trudeau on Friday said he’ll only sign an agreement that’s right for Canada. Trudeau reiterated his government wouldn’t concede to U.S. demands to dismantle its dairy system, known as supply management. Talks were also hung up on U.S. demands to eliminate dispute-resolution panels that Ottawa considers essential, two Canadian officials said Friday.

Canada has been clear about its “red lines” around Nafta, Trudeau said at an event in Oshawa, Ontario. “We are looking forward to signing the right deal for Canada. But we have also been very clear, we will only sign a deal if it is a good deal for Canada.”

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