Trudeau faces renewed questions over Canada-US relations, human rights abusers

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Mr Trump said during a news conference in NY that Canada has treated the U.S. "very badly" during the trade talks.

MacNaughton says reaching a deal is very much a question of whether or not the USA wants to have a agreement.

Canada needs a NAFTA deal "that involves obviously feeling confident about the path forward", the prime minister said.

Canada's Prime Minister Justin Trudeau said earlier Tuesday that there was "a possibility to build on what they agreed", but that his priority is to reach the right deal. He said he'd call it the "United States-Mexico Trade Agreement".

Then the American leader said that he had rejected a request by Trudeau about the meeting "because his rates are too high, and he seems unwilling to change its position".

Trump has used national security as justification for the tariffs, under Sec.

"There is still a fair amount of distance between us", U.S. Trade Representative Robert Lighthizer said of Canada at a conference in NY.

McNaughton said he had jokingly told Robert Lighthizer, the U.S. Trade Representative, that he would schedule a root canal operation after their next session, "just to make me feel better".

"We're thinking about taxing cars coming in from Canada", he said.

Negotiations for possible exemptions for Mexico and Canada from US steel and aluminum tariffs imposed earlier this year will take place after the new Nafta deal is agreed on, Lighthizer said.

To meet that deadline, USA negotiators must send text of an agreement to Congress by Sunday, so that legislators have 60 days for review.

"They (the United States and Mexico) made certain agreements", he said.

Freeland's spokesman, Adam Austen, said Canada would only sign a good deal.

"We don't know if there could be some last minute announcement this week between the USA and Canada, but we are in any event preparing for the situation where we release the text bilaterally and that Canada may join over the next few weeks", he said.

Canada is also resisting US demands to open the protected dairy industry to USA competitors.

In a direct attack on NAFTA itself, President Trump added: "I don't like NAFTA". Canada imposed tariffs on $12.5 billion of USA goods, including steel, toffee, maple syrup, coffee beans and strawberry jam.

The United States and Canada are divided over the best way to resolve trade disputes and on a USA demand for more access to Canada's protected dairy market. "Our desire is to try and find a way in which we can get this agreement done where he can, in his own way, declare victory - to have some kind of a win for what he said he wanted to achieve".

The price of oil, one of Canada's major exports, eased after US data showed a surprise build in domestic crude inventories.

"I love Canada, by the way", he said.