Trump Agrees Not To End NAFTA; Canada, Mexico Agree To Renegotiate

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Trump has recently been targeting Canada by placing new tariffs on softwood lumber and slamming our dairy sector.

On Tuesday, Trudeau and Trump spoke on the phone about the lumber disagreement as well as complaints over dairy trade.

But the Trump administration's newly aggressive rhetoric earned praise from Republican and Democratic lawmakers in lumber and dairy states.

"Disagrees strongly. Them's fighting words", concluded Colbert. But insiders suggest the last week has put that to the test.

"We will try to give the political mandate to go faster and we aim at finishing these negotiations by the end of this year", he said.

"The milk processers have the option of buying from the United States or from Canada".

The premier of the Pacific province of British Columbia, a major lumber-producer, urged Ottawa to retaliate by banning exports of USA thermal coal to Asia via Vancouver.

"It's really a minimal cost, you're looking at $1,500 to $1,700 price difference", Dorn, Jr. said.

"That's a really important message to take to the United States. they need us and they ought to treat us accordingly".

A White House official says the administration is waiting until attorney Robert Lighthizer, a noted protectionist, is confirmed as Mr. Trump's U.S. Trade Representative before going to Congress for fast track authority to renegotiate the treaty, resulting in a formal 90 day notice to Mexico and Canada.

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While on the campaign trail, Donald Trump repeatedly criticized the North American Free Trade Agreement (NAFTA) as hurtful to the United States economy, and now his administration is considering drawing up an executive order that could pull the US out of the trade pact, unidentified White House officials told Politico for an article published Wednesday.

Susan Yurkovich, the President, and CEO of the BC Lumber Trade Council, says American consumers will be impacted by this in the short term and believes increased prices have mitigated the impact on local mills.

The United States has decried Canadian subsidies on lumber since the 1980s, and a 30 percent USA tariff at the time cost 30,000 jobs in Canada, the timber companies said. "Middle class Americans who want to buy a house need Canadian lumber to do that".

Canadian Prime Minister Justin Trudeau said the country would protect its industries.

TRUMP: I am going to either renegotiate it or I am going to terminate it. The two leaders agreed on the importance of reaching a negotiated agreement, recognizing the integrated nature of the industry between Canada and the United States.

Lumber and dairy disputes have soured trade relations under previous Presidents.

"It was a very amicable call", a White House spokesperson wrote.

Trudeau and Trump talked on the phone again on Wednesday night.

The move by Canadian dairy producers has cost USA farms over $150 million, according to The Washington Post.

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