Trump Calls Trudeau 'Great Friend' as NAFTA Tension Remain High

WATCH Trudeau heads to Washington for NAFTA negotiations

And I think Justin understands this: If we can't make a deal, it'll be terminated and that will be fine.

When asked by a reporter if NAFTA doesn't work if Trump could see individual deals with Mexico and Canada, Trump responded: "yes, I would see that".

Canadian Foreign Minister Chrystia Freeland said Trudeau will try to persuade Trump to focus on Mexico, which is also participating in the talks, as a source of potential problems at the negotiations to update NAFTA.

"Putting progressive elements into trade deals - labour protections, environmental protections - actually helps us make the case for trade and reassure people that the benefits of trade will be distributed more fairly and not just to the small number of people who've always benefited from it in the past".

But despite the U.S. threatening to withdraw from the agreement that's been in effect since 1994, Trudeau remained optimistic that the U.S., Canada and Mexico can reach a "win-win-win" solution.

Justin Trudeau's pro-NAFTA tour is on, and during his first stop in the American capital, the prime minister acknowledged that the future of the trade deal is uncertain.

"My optimism toward NAFTA, toward a renegotiation, isn't based on personality or reading political tea leaves", Trudeau said following his talks with Trump. But critics argue it also led to the downfall of U.S. manufacturing as companies moved across the southern border to take advantage of cheaper labor.

The president made the remarks in the Oval Office at the start of a meeting with Trudeau, whose visit coincides with the start of a fourth round of NAFTA talks in nearby Alexandria, Va.

The Canadian press has suggested that Trudeau is on a "charm offensive" in a last-ditch effort to save the deal.

After that, discussions will move onto developing remedies for trade disputes and on Saturday, the discussions are expected to turn to agriculture. The U.S. Chamber of Commerce has pledged to fight any pull-out and the House of Representative's powerful Ways and Means Committee is flexing its muscle to defend the accord. "We are already your biggest customer".

U.S. Chamber of Commerce President Thomas Donohue called Trump's proposals "poison pills" for Canada and Mexico, which could result in the death of the agreement, Reuters reported. "But in the meantime, we'll make a deal with one", the president said.

However, Trump continued to disparage the 23-year-old accord and promote the idea of bilateral trade deals. Another lawmaker, Richard Neal, urged Canada to open its restricted market to U.S. cultural industries.

"We don't hope it will, we don't desire that it will, we don't believe that it will, but it is at least a conceptual possibility as we go forward", Ross said.

Vogel said US and Mexican businesses still believed NAFTA talks would produce a good deal and said they would continue to lobby their governments and lawmakers to negotiate a good deal. In terms of the fairness of NAFTA, I said we'll renegotiate.

"We have an incredibly close relationship".

"We are all much worse off with a bad agreement than with no (NAFTA)", said Guillermo Vogel, who co-chaired the Mexico City event and is a vice president at Tenaris, a steel company.

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