Mexico sees US-Canada trade deal 'in the coming days'

Former Prime Minister Brian Mulroney

Former Prime Minister Brian Mulroney

U.S. President Donald Trump has railed about Canada's supply management system that regulates the price of dairy, poultry and eggs.

He said that the Liberals will also stay focused on NAFTA talks, started previous year at the behest of U.S. President Donald Trump, to strengthen "the most successful trading relationship perhaps in the world".

The American leader's latest effort to goad Canada into cutting a deal comes as talks remain stalemated over US access to Canada's heavily protected dairy market and the future of the binding Chapter 19 appeal process for companies hit by anti-dumping or countervailing duties.

The two sides are still arguing over cultural protections, a US demand for more access to the Canadian dairy market and a dispute resolution mechanism that Canada wants to keep and Washington insists be scrapped.

She said the fact that she and Lighthizer are not immediately scheduled to meet again should "absolutely not" be taken as a sign that the talks are stalled.

Canada's chief NAFTA negotiator, as well as the country's ambassador to the United States, will fly back to Washington on Wednesday night for more talks, she said. "The tone is more constructive, the tone has been different", said the source.

Canadian officials say they have some doubt as to whether Trump has the legal power to unilaterally tear up the 1994 pact, which he says is biased against the United States and needs to be reformed. She declined to say when she would return to Washington, but talked about she is persistent contact with U.S. Swap Representative Robert Lighthizer.

The Wall Street Journal reported Thursday that Trump mused about renaming the trade pact "USMC" - with "M" referring to Mexico and "C" for Canada - based on his disdain for the NAFTA moniker. Uncertainty over the pact's future has hit Canadian and Mexican markets as well as the two countries' currencies.

"I don't think we've spent much time talking about what the name or potential name or renaming could be", he said.

The source who spoke to CBC News on background, due to the sensitivity of the talks, said the external political pressure "is not a good enough reason", for Canada to be forced into a fast finish.

Ottawa and Washington are working to reach an agreement by September 30, the deadline by which the Trump administration must provide Congress with a preliminary text of the deal signed with Mexico in August.

Freeland said both sides are "continuing to work very hard" in a recent press release, though she stresses that Canada will not sign a deal unless it is in the best interest of Canadians.

The person responsible for the negotiations on the mexican side, Kenneth Smith, "is party today [Wednesday] to Washington in order to continue to move forward" on the revision of Nafta, has announced that the mexican minister of the Economy.