Donohue said potentially toxic United States proposals include tightening the "rules of origin" to demand certain amounts of American-made content in products, scrapping NAFTA's dispute resolution mechanism and a "sunset clause" requiring the deal to be unanimously renewed every five years. The Trump administration will move forward with an aggressive rules-of-origin proposal for autos and auto parts that will target 50 percent US content requirement and 85 percent (up from 62.5 percent) regional content, sources say, when negotiations resume this week.
It wasn't clear whether the change in the prime minister's NAFTA message was a direct result of his meeting with the US president, someone he acknowledged "makes decisions that surprise people sometimes".
While Trump has regularly targeted the US trade deficit with Mexico in renegotiating the deal, tensions are rising with Canada, the top buyer of USA exports. Trudeau and U.K. Prime Minister Theresa May have called on Trump to intervene.
Trudeau also said that Canada was well aware of Trump's unpredictability. US -based Boeing alleges that Bombardier gets unfair subsidies from the Canadian and British governments.
The meeting between the two North American leaders comes at the start of a new round of talks over the North American Free Trade Agreement, which Trump has threatened to withdraw from unless he can get a better deal.
U.S. Commerce Secretary Wilbur Ross, one of Trump's top trade advisers, downplayed the chances that a NAFTA termination would become necessary.
Nafta talks, initially scheduled to run from October 11 to October 15 in Washington, may now be extended. Negotiations are expected to stretch through Monday, the officials said. Freeland also characterized the current era as the "most uncertain moment in global relations since the end of the Second World War". "If you think that's a good idea, let the White House know".
"We all want this agreement to be a model for future trade deals", Brady said.
In his appearance with Trudeau, Trump said "we'll see what happens" when asked whether NAFTA was doomed. "We support him in that". Mexican Presidential elections and US mid-term elections scheduled for next year threaten to add to tensions in negotiations.
"These will be met with widespread opposition from Canada and Mexico".
Trudeau is presenting several proposals to modernize NAFTA as he tries to preserve the trade agreement.