Canadian Prime Minister Justin Trudeau is reluctant to sign a basic agreement [on the Trans-Pacific Partnership free trade pact] largely because his country and Mexico are being pressed by the U.S. Trump administration, which has withdrawn from the TPP, to renegotiate the North American Free Trade Agreement (NAFTA).
According to a Canadian media report, Canada and the U.S. are widely divided in NAFTA renegotiations over issues involving U.S. car exports and the protection of Canadian dairy products, which were contentious points during the TPP talks.
Trudeau may have calculated that giving a green light in these areas in a new TPP deal would work against Canada when it renegotiates NAFTA.
“NAFTA renegotiations are a top priority for Canada,” says Professor Michael Geist of the University of Ottawa. “Canada has little choice but to be cautious about a big compromise.” President Donald Trump seems to still loom large over the TPP agreement even after the U.S. departure from the 12-nation trade deal.