Donald Trump says the United States and Mexico have reached a bilateral trade 鈥渦nderstanding鈥� that could lead to an overhaul of the three-country North American Free Trade Agreement and opens the door for continental talks with Canada.

The U.S. president made the announcement today in the Oval Office, with Mexican President Enrique Pena Nieto joining by speaker phone.

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Trump is calling on Canada to negotiate fairly, especially when it comes to dairy products, and he鈥檚 threatening anew to slap tariffs on Canadian cars if Canadian negotiators fail to do what he wants.

The U.S.-Mexican deal could pave the way for Canada鈥檚 return to the continental bargaining table for the first time since trilateral NAFTA talks wrapped up last spring.

Observers have raised concerns that Canada鈥檚 absence from the talks could put Ottawa in a position where it might be pressured into accepting a deal reached between the U.S. and Mexico.

But Prime Minister Justin Trudeau has insisted his government will only sign a deal that鈥檚 good for Canada.

More coming

The Canadian Press

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