The United States and Canada have reached a tentative agreement on a renegotiated NAFTA. According to CBC News, a senior government source is saying there is agreement in principle after resolving a number of contentious issues.
Sources also confirmed to Global News that a deal has been finalized.
Canadian Prime Minister Justin Trudeau called a late Sunday night cabinet meeting to discuss the progress. Canada will reportedly be allowing greater access to its dairy market — something President Donald Trump has long demanded.
Trump earlier this week virtually proclaimed NAFTA to be a dead deal because Trudeau did “not seem to want to move” on its supply management dairy policy that maintains a 300 percent tariff on milk products. Trump also expressed his dislike for Canada’s chief trade negotiator, Foreign Affairs Minister Chrystia Freeland.
“The fact talks are still going on shows there are issues to be settled,” an anonymous source told Global on Sunday, suggesting there had been a change for the better in the rapport between the respective U.S. and Canadian negotiators was positive.
A second source told Global that Canada could be showing signs of capitulating on its dairy tariffs in return for a U.S. guarantee to keep a NAFTA dispute mechanism in place.
Trump had already achieved a trade deal with Mexico but Canada is the U.S.’ number one trading partner.(RELATED: Trudeau Pleads With Mexico To Intervene With Trump Over NAFTA)
Freeland, who was slated to address the United Nations General Assembly on Saturday, has put the speech on hold, apparently to devote more time to last moment efforts to save NAFTA.