"Neither Mexico nor Canada nor major elements within the USA business community and government want to see NAFTA die", Meyer says. "So we'll see what happens with NAFTA", Trump said, adding that it "has to be fair to both countries".
As many as 50,000 workers at auto parts suppliers could lose their jobs due to increased tariffs if the US pulls out of the North American Free Trade Agreement, according to a study released Thursday by the Motor and Equipment Manufacturers Association, which lobbies for suppliers in Washington. "We'll see if we can do the kind of changes that we need".
Andres Rozental, a former Mexican deputy foreign minister involved in the original NAFTA talks, said Ottawa had assumed traditionally close ties with the United States would insulate them from problems with NAFTA.
"We share a series of values with Canada: high wages, rigorous environmental standards, individual freedoms, and a commitment to shared prosperity".
Crude has also failed to benefit from Trump's likely move to decertify the worldwide deal to curb Iran's nuclear program; a decision that could make it more hard for Iran to produce and sell its oil. "I think it's just a bridge too far", said Wendy Cutler, the Asia Society's Washington policy director and former chief USA negotiator for the Trans-Pacific Partnership trade deal canceled by Trump.
But US business groups have expressed grave concern over Trump's threat to pull out.
Canadian Finance Minister William Morneau said today that he was optimistic for a new deal on North American trade, calling negotiations an "opportunity for improvement".
The U.S. Chamber of Commerce has warned against so-called "poison pill" proposals by the U.S., including the sunset clause. Mexico could leave NAFTA and have the strength to move on without any serious long-term structural damage to the economy, he said.
Under current rules, at least 62% of the parts in a vehicle sold in North America must come from the region to avoid being hit with taxes at the border. The negotiations were extended on Wednesday by two days to Oct 17.
"My optimism toward NAFTA, toward a renegotiation, isn't based on personality or reading political tea leaves", Trudeau said following his talks with Trump.
Finance Minister Bill Morneau, in Washington for meetings with G20 finance ministers and the International Monetary Fund, was confronted Thursday with several questions about a possible USA exit from NAFTA.
Trudeau's visit to Mexico is his first official sojourn to the country and follows Pena Nieto's visit to Canada in June 2016.
"There's been huge investments in Canada, the USA and Mexico, that are long-term assets", said Don Walker, chief executive officer of Magna International Inc. a Canada-based parts maker with more than 25,000 employees in the U.S.