Freeland to head back to Washington for more NAFTA negotiations

Gold catches late NY bid on NAFTA headlines, but . . .

Major stumbling blocks for Ottawa and Washington remain: an worldwide system for resolving disputes, Canada's protected dairy industry and Canadian cultural subsidies.

Former federal Canadian trade official Matthew Kronby said the reported American demands indicate to him that the White House doesn't really want to strike a deal with Canada.

Trump has notified Congress he intends to sign the trade deal reached last week with Mexico by the end of November, and officials said the text would be published by around October 1.

The in-person, high-level negotiations got back underway as events marking the 17th anniversary of the 2001 attacks took place around the US, including at the Pentagon with Vice President Mike Pence, not far from where the trade meetings are taking place.

Brian Mulroney says Canada needs to put a little more water in its milk if it expects to make a new NAFTA deal with a hard-bargaining USA president whose political fortunes depend heavily on being able to declare victory for American dairy farmers.

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While that latter issue has been widely seen as the major sticking point, Prime Minister Justin Trudeau has signalled in recent days that Canada might be prepared to show some flexibility when it comes to dairy.

Canada's Foreign Minister Chrystia Freeland will again meet with US Trade Representative Robert Lighthizer on the rewrite of the 25-year-old trade deal, Freeland's spokesman Adam Austen told AFP.

It was not clear when talks would resume on Thursday, and there were no immediate indications what progress may have been made in Wednesday's late session among staff. "The ruination of the country", Trump said at an event in North Dakota.

However, there are questions over the value of a trade deal without the key resolution mechanism. "It can't be renamed something or called something else", Perdue said when asked about dairy concessions needed to reach a NAFTA deal, referring to a new milk class created previous year by Canada to price milk ingredients such as protein concentrates, skim milk and whole milk powder.

"Without Chapter 19, NAFTA is utterly useless as it would subject Canada and Mexico to the vagaries of the USA political system and its courts when determining trade policy actions", said Derek Holt, vice-president at Scotiabank Economics, in a note recently.

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"I don't think President Trump will go to the mat over Chapter 19".

He said, however, it was wrong for Canada to have publicly declared it would not accept concessions on certain files.

"Our farmers don't have access to the Canadian markets the way that they have access to us", Perdue said in an interview that aired Sunday on C-SPAN.

"President, I recommend we accept this deal with Canada; it's not flawless, but it's a good deal, ' then I think he takes it,"' Mulroney said. "That's not who we are", Craft said in prepared remarks.

Trump is threatening to move ahead on a deal without Canada.

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Trudeau, for his part, added that: "we're just going to stay working constructively to get to that win-win-win that we know is there".

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