BREAKING NEWS

Canada's Trudeau, ministers to discuss Trump plans for NAFTA

By REUTERS

JANUARY 23, 2017 08:04

CALGARY - Canada's Prime Minister Justin Trudeau will begin a two-day retreat with his cabinet on Monday, focused mainly on the best approach to take with new US President Donald Trump, whose vow to renegotiate NAFTA could damage Canada's economy.

Trump said on Sunday he plans talks soon on the three-nation North American Free Trade Agreement, under which Canada and Mexico send the majority of their exports to the United States.

Canadian officials -- trying to persuade the new administration that focusing on Canada makes no sense, given how closely the economies are linked - say the Trump team is most concerned about large US deficits with China and Mexico.

"They haven't said anything specific about any real problems that they have with us," said David MacNaughton, Canada's ambassador to Washington and a key player on the NAFTA file.

The danger, he told reporters late on Sunday, is that Canada could suffer collateral damage from US measures designed to cut the trade deficit with Mexico.

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