US and Canadian negotiators pushed ahead in grinding talks to rescue the North American Free Trade Agreement on Thursday, but a few stubborn issues stood in the way of a deal, including dairy quotas, protection for Canadian media companies, and how to resolve future trade disputes.
A U.S. source familiar with the discussions in Washington said it was still unclear whether the two sides could bridge the gaps or whether President Donald Trump will opt for a Mexico-only bilateral trade deal.
“We’re down to three issues: Chapter 19, the cultural issues and dairy. We’ve created leverage and driven Canada to the table,” the source said. “Part of our problem is that Canada has been backsliding on its commitments (on dairy).”
NAFTA’s Chapter 19 governs how disputes are resolved.