Trudeau in turn threatened to cancel a purchase of 18 fighter jets from American aerospace giant Boeing, saying he had told Trump he "disagreed vehemently" with the United States decision. The National Automobile Dealers Association said it was concerned about any changes that would make cars costlier. "So we'll see what happens with NAFTA", Trump said, adding that it "has to be fair to both countries".
His tour of Canada's partners in the North American Free Trade Agreement comes as negotiators from the three countries meet in the United States for their latest round of what Trump vowed would be "tough" talks on a new version of NAFTA.
Trudeau told reporters in Washington DC that he agreed with the United States president that that the NAFTA trade deal needed to be revamped and that any new agreement needed to "give citizens opportunities to succeed".
"Some of us in Mexico think that on several occasions our Canadian friends have come close to throwing us under the bus", Arturo Sarukhan, the former Mexican ambassador to the USA, said at a NAFTA-related event Wednesday in D.C.
Trudeau, in comments later at the Canadian Embassy, said he remains optimistic about the potential for a NAFTA deal but noted that Canadians must be "ready for anything". The Prime Minister reiterated Canada's commitment to modernize the North American Free Trade Agreement (NAFTA) for the benefit of all three partners - Canada, the US, and Mexico.
"These will be met with widespread opposition from Canada and Mexico".
"Despite the non-cooperative approach to some of our Administration's policy proposals, our counterparts in Mexico and Canada are still negotiating with us in full faith".
U.S. proposals include limiting the number of federal government contracts that Mexican and Canadian companies can win, a provision that would cause the deal to automatically expire in five years unless all three countries vote to renew, and changes in how much of a product needs to be made in North America to come under Nafta protections. Whether we like it or not, the world is becoming more globalized.
Current NAFTA rules require cars have at least 62.5 percent of their parts made in the U.S., Canada or Mexico. Mexico could leave NAFTA and have the strength to move on without any serious long-term structural damage to the economy, he said. The negotiations were extended on Wednesday by two days to Oct 17.
"In terms of trade, the USA sells more to Canada than it does to China, Japan and the United Kingdom combined".
The U.S. side sees strengthening the rules of origin for the auto industry as a way to bring back automotive production and jobs from Asia.
Higgins serves as vice-ranking member on the House Committee on Ways and Means, where he also serves as a member of the subcommittee on trade.
"There will always be challenges that come up that we can thoughtfully work through", he told the lawmakers. -Mexican relations and affect bilateral cooperation in non-trade areas.
Mexican Foreign Minister Luis Videgaray warned that an end to NAFTA would mark a breaking point in U.S.