Where US and Canada disagree on NAFTA

President Donald Trump seen with Canada's Prime Minister Justin Trudeau during the G7 Summit in Quebec on June 8

President Donald Trump seen with Canada's Prime Minister Justin Trudeau during the G7 Summit in Quebec on June 8

Canada's cultural exemption was absent from the Trump administration's list of negotiating objectives released before the start of the talks.

Wednesday was the first day that negotiations between the two countries resumed after four intensive days of talks last week ended without a deal on Friday after the mood soured.

Canadian Foreign Affairs Minister Chrystia Freeland is scheduled to meet U.S. Trade Representative Robert Lighthizer in Washington Wednesday after a series of back-to-back meetings last week failed to yield an agreement.

"We know that a win-win-win agreement is within reach and that's what we're working towards", Freeland said.

"There is good faith and good will on both sides".

According to the White House pool report, Trump told reporters in the Oval Office Wednesday that trade negotiations with Canada are "intense".

Trudeau could find himself stranded without allies as the Conservative leadership of British Prime Minister Teresa May is concentrating on bargaining the Brexit deal with the European Union and President Trump stalls over the closed Canadian farming sector. Dawson said Canada has also looked at other policy instruments to protect Canadian cultural industries, such as the deal Ottawa did with Netflix to develop Canadian content.

"If we don't make a fair deal for the USA after decades of abuse, Canada will be out, " he wrote.

Trump's frustration spilled into the open over the holiday weekend as he railed against Canada on Twitter - as well as its many supporters in both political parties.

"That's going to be fine for our country", Trump said.

There are however a number of contentious issues in the U.S.

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The Trump Administration notified Congress Friday of its intent to reach a new NAFTA deal with or without Canada.

"We're seeing goodwill on all sides and if we see some more flexibility, then I think we can start to see things moving in a good direction", added the source.

"Wow, I made OFF THE RECORD COMMENTS to Bloomberg concerning Canada, and this powerful understanding was BLATANTLY VIOLATED", Trump wrote - ignoring the fact that the remarks were reported via an anonymous source by the Star, unencumbered by any such restrictions.

"Yes, Mr. Trump is going to say the worst things possible about Canada - even yesterday, he announced that the rest of the world is profiting from the United States - but that's rhetoric and we should not be too anxious about it", said Leblond.

Lawrence Herman, an worldwide trade counsel, said it prevents USA takeovers, restricts US ownership and ensures Canadian artists - such as authors, actors and musicians - get certain preferences.

Canadian Prime Minister Justin Trudeau on Tuesday indicated Canada would not bend on key demands at talks this week with the United States to update the North American Free Trade Agreement. The best known Chapter 19 cases involving Canada have had to do with softwood lumber, and in the mid-2000s, the dispute resolution panels ruled repeatedly against the U.S., strengthening Ottawa's negotiating position.

The emergence of the cultural exemption as a bone of contention at this stage in the talks surprised those who have followed NAFTA closely.

Trudeau made clear, however, he would insist on keeping the so-called Chapter 19 dispute-resolution mechanism that Washington wants to scrap. Canada is the major export destination for 36 U.S. states, and many of Trump's political supporters have asked that he "do no harm" to the deal, to begin with.

U.S. President Donald Trump has threatened to push ahead with a bilateral deal with Mexico, effectively killing the nearly 25-year-old three-country pact, which covers $1.2 trillion in trade.

The prime minister said his government similarly won't budge on exemptions for Canadian cultural industries that protect broadcast and publishing industries from being taken over by US companies.

"We can't imagine a situation in which an American TV company or network could come up and buy radio stations or buy, you know, CTV for example", Trudeau said earlier in the day, referring to a major Canadian broadcasting network.

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