Why Canada's Exclusion From US-Mexico Deal Raises Obstacle
Published: August 29th, 2018

Why Canada's exclusion from US-Mexico deal raises obstacle

WASHINGTON (AP) — President Donald Trump's drive to revamp the North American Free Trade Agreement has taken an unexpected turn — one that complicates his effort to replace that deal with one more favorable to American workers.

Canada, America's longtime ally and No. 2 trading partner, was left out of a proposed deal Trump just reached with Mexico and is scrambling to keep its place in the regional free-trade bloc — and fend off the threat of U.S. taxes on its vehicles.

By contrast, Mexico, long the target of Trump's ire, has cut a preliminary deal with the United States to replace NAFTA with a pact that's meant, among other things, to shift more manufacturing into the United States.

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In announcing the deal Monday, Trump said he wanted to call it the "United States-Mexico Trade Agreement," pointedly omitting Canada.

Canadian Foreign Affairs Minister Chrystia Freeland hurried to Washington to try to repair the damage, meeting Tuesday with U.S. Trade Rep. Robert Lighthizer.

Freeland said the two had "a very good, constructive conversation" about how to revamp NAFTA. The two sides will begin delving into specific issues Wednesday morning.

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