President Trump and Canadian Prime Minister Justin Trudeau spoke on the phone Tuesday evening about a looming trade deal deadline, the White House said.
Both leaders are under political pressure to strike a deal before Oct. 1, when Trump must submit to Congress the text of a proposed trade deal with Mexico.
There is concern among Canadians about the economic consequences if the U.S. moves ahead with a North American Free Trade Agreement replacement without Canada. The U.S. takes about 75 percent of Canadian exports, and Trump has threatened tariffs.
Many Republicans and business groups, such as the U.S. Chamber of Commerce, also want a three-nation NAFTA replacement, potentially jeopardizing congressional approval of the Mexico pact.
White House press secretary Sarah Sanders announced the call on Wednesday, saying in a statement that Trudeau “expressed his sympathies for the lives lost due to Hurricane Florence, and the two leaders discussed trade,” without elaboration.
Trade negotiations between the U.S. and Canada were thrown into uncertainty last month when someone released to the Toronto Star off-the-record remarks made by Trump in an interview with Bloomberg reporters, in which Trump said he intended to give no concessions to Canada, but that he could not say so publicly.
Trump told reporters in the Oval Office last week that negotiations with Canada continued “in good faith,” addressing a perception to the contrary. One reported sticking point in trade talks is Canada’s dairy system.
Trump announced the U.S.-Mexico trade deal last month and formally notified Congress on Aug. 31 that Trump intends “to enter into a trade agreement with Mexico — and with Canada if it is willing,” leaving the door open for including both countries in a NAFTA replacement.
The full text of the deal is due to Congress within a month of that notification under fast-track trade deal procedures.
