In June, after the G7 summit, Trudeau told reporters that Canada would retaliate with tariffs of its own following the imposition of USA tariffs on steel and aluminum.
Mexican government spokesman Eduardo Sanchez said on Twitter late on Tuesday that Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau, held a bilateral meeting on the sidelines of the U.N. General Assembly. "We don't have any comment beyond that". The 1994 deal underpins $1.2 trillion in annual trade between Canada, Mexico and the United States. Markets and business groups are openly fretting about the damage that a collapse could provoke.
President Trump suggested that a potential U.S. -Mexico-Canada trade deal could be called USMC.
At a press conference in New York, Trump told reporters he had rebuffed a Trudeau request for a meeting "because his tariffs are too high and he doesn't seem to want to move and I told him "forget about it".
The two sides are still far apart on major issues such as how to settle disputes and United States demands for more access to Canada's protected dairy market. However, if anything that might add more pressure on the U.S., which has squeezed a good deal out of Mexico.
Trump criticized the Canadian trade delegation for not striking a revised NAFTA deal, and in particular said he doesn't "like very much" its chief negotiator, Canadian Foreign Affairs Minister Chrystia Freeland.
Freeland declined to comment specifically on Chapter 19, saying only that "rule of law is an extremely important part of how we do things, including trade".
Trump said he told Mexico that the U.S. has to "keep companies", but Mexico is also getting a lot in the new U.S. -Mexico trade deal.
"We're very unhappy with the negotiations and the negotiating style of Canada", Trump said.
He has also repeatedly threatened to walk away from the talks rather than sign on to a deal which would be bad for Canada.
Mexico has already signed on to a new deal to replace the North American Free Trade Agreement (NAFTA), but the USA leader is upset over Canada's tariffs on the U.S., and is considering implementing a new tax on Canadian-made cars.
The three nations' auto industries are highly integrated, and tariffs on Canadian-built cars would be hugely disruptive.
The Americans have imposed a deadline of September 30 to reach a deal.
Congress, wary of upcoming midterms that are widely expected to inject more Democrats into the current power balance on Capitol Hill, is agitating for Canada to join an existing U.S. -Mexico deal before a self-imposed deadline of Sunday.
While the talks have been "challenging", the ball is on the USA side of the court, MacNaughton said at an event in Toronto hosted by the US website Politico. Officials in the PMO insisted no such request had been made, given already close contact with the White House.
First, there were the comments from US national security adviser John Bolton, who suggested Monday that requests for a bilateral meeting "couldn't be accommodated".