President Trump describes the negotiations as “intense” as trade talks between the U.S. and Canada continue today in Washington.
“We’ll see how it works out,” Trump told reporters Wednesday. “If it doesn’t work out, that’s going to fine for our country. If won’t be fine for Canada.”
A U.S. source familiar with the discussions in Washington said it was still unclear whether the two sides could bridge the gaps or whether President Donald Trump will opt for a Mexico-only bilateral trade deal.
“You look at the tariffs that were put on our dairy products, and you look at the walls that were built up in terms of barriers. We have tremendous trade barriers and we have not been treated fairly,” Trump said. “So I think they will treat us fairly. I think we’ve come a long way toward them treating us fairly.”
“We’re down to three issues: Chapter 19, the cultural issues and dairy. We’ve created leverage and driven Canada to the table,” the source said. “Part of our problem is that Canada has been backsliding on its commitments (on dairy).”
By all accounts, Canada’s Class 7 milk pricing program remains a sticking point in the negotiations. Ag Secretary Sonny Perdue told reporters Wednesday the U.S. does not have a problem with Canada having some sort of support system for its dairy producers. But Perdue added, “We’re simply saying you need to manage the supply and not allow your producers to over-produce, which reduces the international price that our dairy people have to compete with—undercutting them.”
The Trump administration charges that Canada discriminates against U.S. dairy exports. It also wants to end the Chapter 19 arbitration panels for resolving disputes over anti-dumping tariffs, something Canada has used to defend its lumber exports to the United States, despite U.S. charges that Canadian lumber is unfairly subsidized.
Trump has set a deadline for a deal this week, prompting aides to U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland to work well into the evening on Thursday to find ways to move forward.
Bloomberg News cited a Canadian government official as saying that a deal was not expected to be reached this week.
“We are making good progress,” Freeland told reporters following a short meeting with Lighthizer at the USTR offices on Thursday evening.
She repeated her earlier statements that the day’s discussions were “constructive and productive” amid an atmosphere of “goodwill on both sides.”
She declined to discuss specific issues under negotiation but said talks would resume on Friday.
