Justin Trudeau says he’s happy the U.S. and Mexico have an agreement on bilateral issues leading up to talks aimed at updating the North American Free Trade Agreement.

(Paul Chiasson/Canadian Press)

”We have been encouraged by the progress made by our NAFTA partners over the past weeks.  This was an important step to moving forward on renegotiating and improving NAFTA,” said the prime minister after a meeting of with a group of businessmen in Montreal.

According to one source, Canada’s pressing concern is how Chapter 19 of the original NAFTA – the dispute settlement mechanism – has been renegotiated by the U.S. and Mexico.

Sources say Canada won’t accept a deal without a strong dispute resolution system.

Meanwhile, two of Donald Trump’s top lieutenants – Commerce Secretary Wilbur Ross and Larry Kudlow, director of the president’s National Economic Council said in separate interviews that concession on dairy are essential to getting a deal done by Friday, a deadline imposed by the president.

Trudeau says Canada’s position on supply management has not changed, adding he will defend it.