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U.S. Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland were unable to clinch a deal despite meeting late into the evening on Thursday.

Prime Minister Justin Trudeau has said the mechanism is crucial to a new NAFTA, but Mexico already has agreed to drop it. Freeland is scheduled to attend the Liberals' caucus retreat Wednesday in Saskatoon and it's unclear whether she will return to the US capital late in the week.

Canada and the USA are trying to finalize a text that could be submitted to Congress by the end of the month to join the deal the Trump administration signed with Mexico.

"Canada has been ripping us off for a long time".

The trade talks were overshadowed in Washington by the anniversary of the terrorist attacks of September 11, 2001, and Freeland took the opportunity to tout the importance of the US-Canada relationship.

"Having said all of that, nothing is done until everything is done" - and that says it all really, but USA officials have said time is running out to agree on a text that can be signed by American, Canadian and Mexican leaders by November 30, before the current Mexican government leaves office. But as an October 1 deadline to renegotiate NAFTA looms, Canada is prepared to offer similar concessions on the dairy industry to those that it agreed to in free trade deals with the European Union and Pacific Rim nations, the sources said.

Yet, he stressed that "if we sign the deal it'll be. for Canada and Canadians".

"We will be travelling to Washington ... to continue the NAFTA negotiations", Ms. Freeland told reporters at the Women in the World event in Toronto, without commenting further on the state of the trade talks.

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The two sides have so far been unable to resolve their differences over US access to the Canadian dairy market, a cultural exemption for Canada and the Chapter 19 dispute resolution mechanism.

"And one of the things that I think we are accomplishing in this agreement is a better deal for Canadian and USA workers in the auto sector". Trump wanted changes that would destroy family farms across Canada, he said.

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

The latest talks between Canada and the United States have been intense but constructive, marking a departure from acrimonious tit-for-tat that surrounded past rounds.

The two countries will meet in Washington on Tuesday to decide how they'll include the U.S.'s agreement with Mexico into the deal.

Craft, a fixture at the NAFTA talks last week, was in Gander, N.L., to commemorate the role that town played on the day 17 years ago when the United States shut down its airspace, forcing countless passenger airliners to find refuge wherever they could.

Discussions weren't expected to get going again until the end of the week.

President Donald Trump has made it very clear that American farmers are a priority, Mulroney said - adding Trump needs a "victory" for them.


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