President Donald Trump says the US will either do a three-way free trade deal with Mexico or Canada or direct deals and says there will be a "sunset clause" that will allow for the deal or deals to be reopened at a later date.
And now, Morneau added the tariffs to Canada's list of deal breakers on NAFTA. Morneau said progress is being made, but more work needs to be done to conclude the negotiations. "So we are going in with a really positive spirit". Trudeau says what the leaders did this weekend was "roll up our sleeves" and figure out language they could agree to on a broad range of issues. In the weeks leading up to the summit, he imposed tariffs on steel and aluminum from Canada, Mexico, and the European Union. Although Mr. Trump signed onto the communique for the G-7 summit, he tweeted afterward that he had instructed representatives "not to endorse" it after Trudeau's statements.
Thursday, Trump took aim at Trudeau and Macron, accusing them of benefiting from one-sided trade arrangements with the United States. "We have a little test every once in a while when it comes to trade". Canada too says it remains opposed. Why are we having a meeting without Russian Federation being in the meeting?
Trump denied that the summit had been contentious, a remark that contradicted what one G7 official described as a bitter harangue on Friday between the U.S. president and his counterparts over tariffs. And let us not forget the American withdrawal from the Paris climate agreement a year ago.
"The loss of trade through tariffs undermines competition, reduces productivity and removes the incentive to innovate and ultimately makes everyone poorer", she said. All three trading partners have threatened to retaliate with their own levies against USA imports.
Germany's Angela Merkel and world leaders confronts a stone-faced Donald Trump at the G7 summit.More news: Amazon’s new smart speaker is a TV streaming box, and vice versa
Instead, a chairman's statement from the host Trudeau could be produced, setting out what was discussed and where agreement had been impossible. German Chancellor Angela Merkel sat between Macron and Trump on a sofa, while Trudeau sat to the left of the USA president.
Trudeau refused, and the meeting was off.
Mrs May has acted as something of a mediator in heated talks at the worldwide summit in Quebec, pleading with fellow leaders to step back from the brink of a trade war at a session on Friday night.
"On NAFTA we either leave it the way it is as a three-some deal with Canada, the United States and Mexico and change it very substantially - we're talking about very big changes".
Trump, who repeated that his tariffs are meant to protect USA industry and workers from unfair global competition, told reporters he had suggested to the other G7 leaders that all trade barriers, including tariffs and subsidies, be eliminated. I mean, we have India, where some of the tariffs are 100 percent.
Pierre Lampron, the president of Dairy Farmers of Canada, shot back at Trump's claims about his industry. Canada is strongly of the opposite view, with Trudeau calling that rationale "insulting" since Canada and the USA are so integrated on continental defence and security issues.