'Fair trade, fool trade', Trump's tweets spew ire on NATO allies, Trudeau

U.S. President Donald Trump fired off a volley of tweets on Monday venting anger on NATO allies, the European Union and Canadian Prime Minister Justin Trudeau in the wake of a divisive G7 meeting over the weekend.

The escalating clash over trade between Washington and some of its closest global partners cast a cloud over Trump’s efforts to make history in nuclear talks in Singapore on Tuesday with Kim Jong Un of North Korea, one of America’s bitterest foes.

Having left the Group of Seven summit in Canada early, Trump’s announcement that he was backing out of the joint communique torpedoed what appeared to be a fragile consensus on the trade dispute between Washington and its top allies.

The communique, which had appeared to have papered over the cracks that surfaced so uncharacteristically at the G7, said the leaders of the United States, Canada, Britain, France, Italy, Germany and Japan were agreed on the need for “free, fair, and mutually beneficial trade” and the importance of fighting protectionism.

Trump’s extraordinary outburst on Monday against NATO allies, the European Union and Canada appeared aimed at striking a chord with voters who support his “America First” agenda.

At the same time, however, it put Trump in the position of going into a crucial summit at odds with countries he needs on his side to pressure North Korea to move toward dismantling a nuclear arsenal that threatens the United States.

It was left to Trump’s aides to figure out how to explain Trump’s airing of grievances against trading partners instead of focusing on his coming talks with Kim, which the president’s supporters hope will provide him with a major foreign policy win.

Top U.S. NAFTA negotiator sees no problem with pace of talks

The top U.S. negotiator at talks to modernize the NAFTA trade pact on Monday dismissed questions about why his team had so far failed to produce specific proposals on key issues, saying “I don’t see a problem.”

Officials from the United States, Mexico and Canada are in Ottawa for the third of seven planned rounds of talks. The U.S. delegation has yet to unveil its precise position on several points, prompting concerns the process to update the 1994 pact could drag on beyond the scheduled end-December finish.

Canadian Prime Minister Justin Trudeau earlier predicted some tough days ahead for negotiators and declined to say whether he thought the talks could meet the deadline.

He added: “The negotiations move forward at a certain pace and we respect that reality.” 

U.S. President Donald Trump, who frequently describes the treaty as a disaster, is threatening to walk away unless major changes are made.

Canada’s chief negotiator on Sunday said he did not expect the U.S. side to present detailed proposals in Ottawa on major issues such as dispute settlement, the dairy sector and tougher rules for North American content on autos. 

Foreign Minister Chrystia Freeland later told reporters that the three sides had made “solid progress” on topics such as electronic border forms and harmonization of regulations. 

Pressed on the chances of finishing by the end of the year, she repeated earlier statements that “we want a good deal, not any deal”. Trade talks traditionally leave the toughest topics until the end, she added. 

Canadian officials say it is still possible to meet the year-end deadline although they concede there are significant uncertainties about the timetable. 

At his Toronto event, Trudeau repeated a promise to defend Canada’s system of tariffs and import restrictions designed to defend its dairy sector. The U.S. industry dislikes the measures. 

U.S. Trade Representative Robert Lighthizer, Freeland and Mexican Economy Minister Ildefonso Guajardo, the three top officials driving the talks, will meet in Ottawa on Tuesday and Wednesday, the last two days of the third round.