Prime Minister Justin Trudeau said during an interview Tuesday with a Winnipeg radio station, CJOB, that there are certain positions Canada has and remain firm on.
"Our farmers don't have access to the Canadian markets the way that they have access to us".
"To continually undermine the industry is absolutely devastating and it weakens our industry overall", said David Wiens, vice president of Dairy Farmers of Canada.
USA president Donald Trump threatened Friday to impose a 20 per cent tariff on cars if a NAFTA agreement can't be reached with Canada.
"To me, a lot of that is consistent with my suspicion that the US doesn't really want to get a deal [or] at least the [Trump] administration doesn't", he said, citing the leaked off-the-record comments Mr. Trump gave Bloomberg in late August when he said he was refusing to compromise with Canada and that any deal with Canada would be "totally on our terms".
"Even if we gave him everything he wanted - and there is no way we would ever do that - who can say whether he'd be satisfied?" said one source, who declined to be identified given the extreme sensitivity of the situation.
Last week, as the The Globe and Mail reported, Mr. Trump's trade chief, Robert Lighthizer, refused Ottawa's key demand, the preservation of the Chapter 19 dispute-resolution system, in order to extract maximum concessions from Canada on its protected dairy market and pharmaceutical patents.
"So if we don't find some way to accommodate some of that, then we're not going to have a deal".
The talks are focused on USA demands to scrap the so-called Chapter-19 dispute resolution mechanism in NAFTA, overturn some of Canada's current "carve-out" of cultural industries from free-trade rules and loosen protections under the dairy sector's supply management system.
"We agreed that it would be useful to continue talking today, so we're back for more negotiations", Freeland told reporters as she entered the USTR offices in Washington. "But we don't negotiate differently because of pressure tactics like that".
Wednesday was the first day that negotiations between the two countries resumed after four intensive days of talks last week ended without a deal on Friday after the mood soured.
After her stop in Washington, Freeland is due to attend this week's meetings of the governing Liberal Party of Canada in Saskatoon, Saskatchewan.
Freeland said Canada's main goal is to get a good deal, not focus on the end-of-September deadline. Overall, he said, he believes Canada is handling the talks well.
"Many have seen this market over the last few decades, from an American point of view, as just being off the table", Reed said in an interview with Global's "The West Block" that aired Sunday morning.
"Forget what you read about NAFTA negotiations and Twitter wars".
USA farmers complain Canada is flooding export markets.
Trump has notified Congress he intends to sign the trade deal reached last week with Mexico by the end of November, and officials said the text would be published by around October 1.
The hope is for a trilateral agreement in principle that Congress can approve before Mexico's new president takes office on December 1.