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| Nafta Deal in Reach as Canada and U.S. Iron Out Details | |
| (35 minutes later) | |
| WASHINGTON — The United States and Canada are moving closer to a deal that would save the three-nation North American Free Trade Agreement, according to people consulted on the negotiations, and a deal could be announced on Sunday evening, ahead of a White House deadline. | WASHINGTON — The United States and Canada are moving closer to a deal that would save the three-nation North American Free Trade Agreement, according to people consulted on the negotiations, and a deal could be announced on Sunday evening, ahead of a White House deadline. |
| An agreement is not yet final and there are still several issues that need to be resolved, these people cautioned. They added that it was still possible that the two countries would fail to produce the legal text of a pact by a midnight deadline. Mexico had reached its own deal with the United States in late August. | An agreement is not yet final and there are still several issues that need to be resolved, these people cautioned. They added that it was still possible that the two countries would fail to produce the legal text of a pact by a midnight deadline. Mexico had reached its own deal with the United States in late August. |
| But Canada has signaled that it is prepared to ease protections on its dairy market, according to a person briefed on the discussions, and provide access that is similar to what the United States would have gained through the Trans-Pacific Partnership, a trade treaty that President Trump withdrew from last year. | But Canada has signaled that it is prepared to ease protections on its dairy market, according to a person briefed on the discussions, and provide access that is similar to what the United States would have gained through the Trans-Pacific Partnership, a trade treaty that President Trump withdrew from last year. |
| The United States is poised to relent on its demands to eliminate an independent tariff dispute settlement system that Canada has said is a red line in negotiations, according to a person consulted on the negotiations. | The United States is poised to relent on its demands to eliminate an independent tariff dispute settlement system that Canada has said is a red line in negotiations, according to a person consulted on the negotiations. |
| The countries also appear to have reached an understanding that would protect Canada from the threat of automobile tariffs, which Mr. Trump has routinely threatened, though it is not clear how far those protections would extend. Canada also appears ready to accept assurances that steel and aluminum tariffs that Mr. Trump has imposed will be lifted, though it remains unclear whether the taxes would be replaced by quotas that limit metal imports. | The countries also appear to have reached an understanding that would protect Canada from the threat of automobile tariffs, which Mr. Trump has routinely threatened, though it is not clear how far those protections would extend. Canada also appears ready to accept assurances that steel and aluminum tariffs that Mr. Trump has imposed will be lifted, though it remains unclear whether the taxes would be replaced by quotas that limit metal imports. |
| After months of sputtering talks, momentum picked up this weekend as Justin Trudeau, Canada’s prime minister, inserted himself and made clear that he wanted to get something done. Mexico has also scrambled to try and ensure that the 25-year-old Nafta pact remains trilateral. | After months of sputtering talks, momentum picked up this weekend as Justin Trudeau, Canada’s prime minister, inserted himself and made clear that he wanted to get something done. Mexico has also scrambled to try and ensure that the 25-year-old Nafta pact remains trilateral. |
| President-elect Andrés Manuel López Obrador of Mexico said on Friday that Mr. Trudeau had appealed to him to help pave the way for a three-nation deal and that he would insist that a revised Nafta include Canada. | President-elect Andrés Manuel López Obrador of Mexico said on Friday that Mr. Trudeau had appealed to him to help pave the way for a three-nation deal and that he would insist that a revised Nafta include Canada. |
| A definitive agreement is far from guaranteed, however. As of Sunday morning, several “sticking points” remained and the United States was preparing to move ahead with its bilateral deal with Mexico. Peter Navarro, one of President Trump’s senior trade advisers, said that he expected a “market moving” announcement was imminent one way or another. | A definitive agreement is far from guaranteed, however. As of Sunday morning, several “sticking points” remained and the United States was preparing to move ahead with its bilateral deal with Mexico. Peter Navarro, one of President Trump’s senior trade advisers, said that he expected a “market moving” announcement was imminent one way or another. |
| “Everybody’s negotiating in good faith right now as we speak and the deadline is midnight tonight to get the text in to Congress in order to make sure this goes forward,” Mr. Navarro said in an interview with Fox News. “So it’s either going to be the text in with Mexico and the U.S. or the text goes in with all three countries.” | “Everybody’s negotiating in good faith right now as we speak and the deadline is midnight tonight to get the text in to Congress in order to make sure this goes forward,” Mr. Navarro said in an interview with Fox News. “So it’s either going to be the text in with Mexico and the U.S. or the text goes in with all three countries.” |
| Industry lobbyists who have been briefed on the negotiations said that one of the biggest obstacles has been Canada’s desire to have Mr. Trump’s steel and aluminum tariffs lifted as part of a new Nafta agreement and to receive assurances that Canada will not face new tariffs on automobiles, which Mr. Trump has repeatedly threatened. In exchange, Canada has expressed openness to offering concessions on access to its dairy market. | Industry lobbyists who have been briefed on the negotiations said that one of the biggest obstacles has been Canada’s desire to have Mr. Trump’s steel and aluminum tariffs lifted as part of a new Nafta agreement and to receive assurances that Canada will not face new tariffs on automobiles, which Mr. Trump has repeatedly threatened. In exchange, Canada has expressed openness to offering concessions on access to its dairy market. |
| American officials declined to comment on the talks. A Mexican official said that all parties were working “intensely” through the day. A Canadian official described the negotiations as “constructive.” | American officials declined to comment on the talks. A Mexican official said that all parties were working “intensely” through the day. A Canadian official described the negotiations as “constructive.” |
| While Canada had played down the end-of-the-month deadline, the talks were restarted in earnest this weekend as the United States and Mexico signaled they would release text of their bilateral trade agreement as early as Friday. Mexico wants a deal signed before Dec. 1, when the new Mexican administration takes over and the Trump administration wants the current, Republican-controlled Congress to vote on the deal quickly, given a potential change in control after the November midterm elections. | While Canada had played down the end-of-the-month deadline, the talks were restarted in earnest this weekend as the United States and Mexico signaled they would release text of their bilateral trade agreement as early as Friday. Mexico wants a deal signed before Dec. 1, when the new Mexican administration takes over and the Trump administration wants the current, Republican-controlled Congress to vote on the deal quickly, given a potential change in control after the November midterm elections. |
| With the timeline shrinking, Canada’s leadership redoubled its efforts to find common ground. Chrystia Freeland, the Canadian foreign minister and its top trade negotiator, canceled plans to give a speech at the United Nations in New York on Saturday and hunkered down in Ottawa to help steer the negotiations. On Friday night, Ms. Freeland and her team held a conference call with Robert E. Lighthizer, the United States trade representative, and other American negotiators, according to a person familiar with the talks. | With the timeline shrinking, Canada’s leadership redoubled its efforts to find common ground. Chrystia Freeland, the Canadian foreign minister and its top trade negotiator, canceled plans to give a speech at the United Nations in New York on Saturday and hunkered down in Ottawa to help steer the negotiations. On Friday night, Ms. Freeland and her team held a conference call with Robert E. Lighthizer, the United States trade representative, and other American negotiators, according to a person familiar with the talks. |
| Discussions between the United States and Canada had stalled amid souring relations between Mr. Trump and Justin Trudeau, Canada’s prime minister. Mr. Trump lashed out at Canada last week during the United Nations General Assembly meeting for mistreating the United States on trade and said he had rejected a meeting with Mr. Trudeau because of Canada’s high tariffs. That followed a testy meeting in June, when Mr. Trump accused Mr. Trudeau of being “dishonest,” and a threat last week to tax Canada’s auto exports into the United States if it did not agree to America’s demands. | Discussions between the United States and Canada had stalled amid souring relations between Mr. Trump and Justin Trudeau, Canada’s prime minister. Mr. Trump lashed out at Canada last week during the United Nations General Assembly meeting for mistreating the United States on trade and said he had rejected a meeting with Mr. Trudeau because of Canada’s high tariffs. That followed a testy meeting in June, when Mr. Trump accused Mr. Trudeau of being “dishonest,” and a threat last week to tax Canada’s auto exports into the United States if it did not agree to America’s demands. |
| With relations worsening and the fate of the pact up in the air, Mr. Trudeau reached out to Mr. López Obrador, who said he would not look to reopen negotiations with the United States once he takes office on Dec. 1. | With relations worsening and the fate of the pact up in the air, Mr. Trudeau reached out to Mr. López Obrador, who said he would not look to reopen negotiations with the United States once he takes office on Dec. 1. |
| Luis Videgaray Caso, Mexico’s foreign minister, was also working with the United States and Canada on Friday to bring the two countries closer together, according to a Mexican official. | Luis Videgaray Caso, Mexico’s foreign minister, was also working with the United States and Canada on Friday to bring the two countries closer together, according to a Mexican official. |
| Mr. Trudeau has been directly involved in the trade negotiations and also spent time over the weekend seeking advice from executives of big Canadian banks. | Mr. Trudeau has been directly involved in the trade negotiations and also spent time over the weekend seeking advice from executives of big Canadian banks. |
| The United States and Mexico were expected to release the text of their agreement on Friday night but delayed doing so as talks with Canada gathered pace. | The United States and Mexico were expected to release the text of their agreement on Friday night but delayed doing so as talks with Canada gathered pace. |
| The revised Nafta has a far greater chance of being ratified by Congress if Canada is included. But its fate is still uncertain since Democrats could take control of the House or the Senate in the midterm elections in November and attempt to call for changes to the agreement. | The revised Nafta has a far greater chance of being ratified by Congress if Canada is included. But its fate is still uncertain since Democrats could take control of the House or the Senate in the midterm elections in November and attempt to call for changes to the agreement. |
| Lawmakers have said that they do not expect Congress to vote on the deal until early next year. | Lawmakers have said that they do not expect Congress to vote on the deal until early next year. |