Canadian Gov't Believes Deal to Update NAFTA is Still Possible

A deal to update the NAFTA agreement is still possible despite the US intention to impose tariffs on Canadian and Mexican steel and aluminium, Canada's Foreign Minister Chrystia Freeland said on Tuesday.

Canada's Foreign Minister Chrystia Freeland told legislators that the country's government is working on ways to directly support Canadian steel and aluminum. Canada is also discussing with the European Union, Japan and Mexico possible US auto tariffs.

Speaking about the North American Free Trade Agreement (NAFTA), Freeland said that the deal to update it is still possible.

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On June 16, US Secretary of State Mike Pompeo discussed among other issues the NAFTA agreement with Canadian Foreign Minister Chrystia Freeland by phone.

"Secretary Pompeo and Foreign Minister Freeland also discussed the importance of continuing negotiations to modernize the bilateral Columbia River Treaty regime and NAFTA," US State Department spokesperson Heather Nauert said Saturday.

On June 1, the United States imposed 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports from Canada, as well as from the European Union and Mexico, which all were initially exempt from the extra tax.

NAFTA has been in place since 1994 when the United States, Canada and Mexico signed the agreement. US President Trump has sharply criticized NAFTA and threatened to pull the United States out of the agreement if a better deal was not negotiated.