NAFTA deal, free-trade deal
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Canada Prime Minister Justin Trudeau will not join the meeting with Mexican president Andres Manuel Lopez Obrador and U.S. President Donald Trump in Washington, D.C.

The prime minister wished the U.S. and Mexico well for the meeting.

"While there were recent discussions about the possible participation of Canada, the Prime Minister will be in Ottawa this week for scheduled Cabinet meetings and the long-planned sitting of Parliament," the Prime Minister's Office was quoted in a statement.

The D.C. meeting will talk about the new North American Free Trade Agreement (NAFTA). This was enforced on July 1.

Trudeau's office said that Canada will still cooperate with Mexico and the U.S. to make sure that this will be a successful agreement.

Trudeau wished Lopez Obrador a successful meeting with the U.S. President. through a phone call on Monday.

"The two leaders discussed the significant efforts made by each country to fight the COVID-19 pandemic and looked forward to their next opportunity to meet in person," A readout of the call was quoted in a CBC report.

Trudeau is set to attend a virtual government retreat tomorrow. Meanwhile, Finance Minister Bill Morneau will deliver a "fiscal snapshot" on Wednesday.

Trudeau was asked last week if he would attend the D.C. meeting with the U.S. and Mexico leaders.

He said that with Canadian public health rules he would be required to be quarantined for two weeks on his return.

US-Canada Trade Issue

On the other hand, the Canadian leader mentioned some business issues with the U.S.

"We're obviously concerned about the proposed issue of tariffs on aluminum and steel that the Americans have floated recently," Trudeau was quoted in a report.

Trudeau was referring to the statement Trump made last month. The U.S. president said he might look at bringing back taxes on Canadian aluminum.

The U.S. president said that Canadian metals are a "national security threat" to the U.S.

Trudeau said the taxes are "insulting" and senseless. He said that the business between the U.S. and Canada is generally balanced.

In a 2018 Washington post report, Trudeau said that he wants the steel and aluminum taxes removed if a new NAFTA deal is applied. The Trump administration is having second-thoughts.

Another issue is the "Chapter 19" in the original NAFTA design. This allows one country to challenge another country about taxes and dropping goods below market value.

The U.S. would like to remove the chapter from the original version. Canada still wants it included in the new agreement.

Canada also wants to have better environmental protections. The U.S. wants better intellectual property protections. These issues might compromise the Trans-Pacific Partnership (TPP).

TPP was a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam, and the U.S.

TPP was supposed to be the world's largest trade deal before Trump withdrew the U.S. in 2017.

The New NAFTA

NAFTA's updated version is the United States Mexico Canada Agreement (USMCA). The changes include new rules on labor and environmental standards.

USMCA also includes changes in intellectual property protections and some digital trade laws, according to a Vox report.

There is also a 16-year sunset clean. This means the terms of the agreement end after 16 years.

The deal will be reviewed every six years. Canada, Mexico, and the US can decide whether to extend the USMCA.

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