Trump sees deal with Canada minus Mexico

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Trump is welcoming Trudeau to the Oval Office at the start of a new round of talks over NAFTA.

US and Mexican business leaders warned that talks on a new North American Free Trade Agreement (NAFTA) could collapse because of hardline demands from US President Donald Trump's administration. The Trump administration will move forward with an aggressive rules-of-origin proposal for autos and auto parts that will target 50 percent US content requirement and 85 percent (up from 62.5 percent) regional content, sources say, when negotiations resume this week.

"We'll see if we can do the kind of changes that we need", Trump said.

Trump accuses NAFTA of shipping jobs south of the United States border and calls it the worst trade deal ever signed.

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"I think it's been clear that circumstances are often challenging, and we have to be ready for anything - and we are", Trudeau said.

Appearing before the Senate, Videgaray said the team of Mexican negotiators is reviewing the NAFTA with the United States and Canada with good will and a constructive spirit. "We'll see what happens, we have a tough negotiation".

"We will only remain in this treaty if it is in the national interest", said the foreign minister.

Indeed, there have been early but unmistakable signs of trouble in the talks, with big business groups expressing fear the quarter-century-old deal could disappear.

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Speaking to reporters at the Canadian Embassy after his meeting, Trudeau told reporters that it was possible to get a "win-win-win" from the negotiations but stressed that Canada was "ready for anything".

He joined the committee to warm applause and expressions of optimism about the deal from both the committee's Republican chair and the ranking Democrat member.

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From there, discussions are scheduled to move onto developing remedies for trade disputes, as well as the contentious issue of agriculture.

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