The talks continue after Foreign Affairs Minister Chrystia Freeland's late night, 20-minute meeting with her US counterpart, trade czar Robert Lighthizer on Thursday. "I'm just saying: let go - milk, dairy, drop the barriers, give our farmers a break, and we can fix some other things".
"The United States would rather have a trade deal with Canada, but it has to be a good deal, right".
"From what we understand, the USA not only wants access to the market, but that even the exports to the USA or anywhere stop altogether", he said from Washington on Friday.
The third unresolved issue is Canada's insistence that previous NAFTA cultural exemptions protecting its publishing and media companies from being acquired by American companies be preserved.
Freeland called that meeting constructive along with the earlier two-hour session with Lighthizer at his office near the White House.
Washington has used those tariffs as leverage in the NAFTA talks.
USA and Canadian officials resumed their negotiations this week to modernize the 1994 pact, which governs $1.2 trillion a year in trade between the United States, Canada and Mexico and supports hundreds of thousands of jobs.
Meanwhile, he said the U.S.is still talking with Beijing despite China being "unsatisfactory" on USA requests.
"The word that continues to block the deal is M-I-L-K", Kudlow told FOX Business' Stuart Varney.
Osaka defeats Keys, will face Serena in US Open final
But she has firepower on every front as well as a quirky, blank-faced insouciance that can be disconcerting for her opponents. She has all the raw tools necessary to win this match, and she's been the best player in the tournament thus far.
Freeland did not say whether the negotiations would continue later Friday or next week.
President Donald Trump threatened Friday, September 7 to slap tariffs on all of the Chinese goods imported into the United States, ramping up the already tense trade relations with Beijing amid ongoing talks with Canada and the EU.
Trudeau said this week that his "red lines" are the preservation of the "Chapter 19" dispute resolution system, which allows Canada to challenge USA duties at an independent panel rather than in US courts, and the preservation of the "cultural exemption" that allows Canada to favour Canadian music, movies and television, among other cultural products, over USA competitors.
Larry Kudlow, top economic adviser to Trump, told Fox News on Friday morning that US access to Canada's protected dairy market is the single issue holding up the negotiations.
Trudeau said earlier in the week that he would be willing to give incremental ground on dairy, while preserving Canada's protectionist supply management system, if the us were willing to make its own concessions.
Data released Wednesday showed the USA trade deficit hit a five-month high of $50 billion.
The hope is for a trilateral agreement in principle that Congress can approve before Mexico's new president takes office on December 1. The Trump administration is trying to get a piece of Canada's protected dairy market, which keeps out foreign competition with 300-per-cent tariffs.
Trump has claimed that the 1994 NAFTA pact has caused the loss of hundreds of thousands of U.S.jobs, something that most economists dispute.