READ MORE: US Relations With Mexico Improving, Big Bilateral Trade Deal Coming — Trump

Canadian officials were motivated by the successful trade talks between the United States and Mexico, which were necessary to renegotiate the North American Trade Agreement (NAFTA), Katie Simpson, a spokesperson for Canada's foreign minister, said on Monday. NAFTA has come under fierce scrutiny by President Trump since his time on the campaign trail, even calling the agreement the “worst trade deal ever made.” Attempts to form a new pact faltered numerous times between the three countries, and talks with Mexico have been focused on creating new rules for the auto industry. Mexican Foreign Minister Luis Videgaray told a news conference in Washington that if Canada and the United States do not reach an agreement on NAFTA, “we already know that there will still be a deal between Mexico and the United States.”

NEW AUTO RULES

The Mexico-U.S. discussions focused on crafting new rules for the automotive industry, which Trump has put at the heart of his drive to rework a pact he has repeatedly described as a “disaster” for American workers. “What happens next is anyone’s guess, but we should keep our eyes open for the return of Canada’s Foreign Minister, Chrystia Freeland, to Washington to wrap up the discussions soon.”

The three North American countries do about $1 trillion in trade among themselves annually. "We will only sign a new NAFTA that is good for Canada and good for the middle class,” said the Canadian foreign ministry in a statement, indicating Ottawa’s willingness to “continue to work toward a modernized NAFTA.”

 “We hope that Canada can join in now,” Lighthizer subsequently told reporters during a conference call. "We will only sign a new Nafta that is good for Canada... Canada's signature is required," said spokesman Adam Austen.
The United States and Mexico reach common ground on key trade terms in the North American Free Trade Agreement. Canada has yet to sign off on the agreement.