Trudeau warns 'no NAFTA deal is better than bad deal' for Canada

Nevertheless, Trudeau said both sides were nearing an agreement.

"We recognise that there is a possibility of getting there by Friday, but it is only a possibility, because it will hinge on whether there is ultimately a good deal for Canada," Trudeau said. "No NAFTA deal is better than a bad NAFTA deal."

Trump on the other hand told reporters that negotiations were going really well.

Earlier in the week, US negotiators had already met with Mexican officials and agreed that the pact would establish new rules for manufacturing, labour and the environment.

Ottawa had been excluded from talks between Mexico and the US due to the poor rapport between Trudeau and Trump.

Yet both countries now said they would work together in order to meet the Friday deadline to revise NAFTA.

“Canada very much wants to make the deal,” President Trump said at the White House Wednesday.

One of the main bones of contention that was left to resolve was Canada's steep tariffs on dairy products, which averaged 249%.

The American Farm Bureau had lobbied for a rewrite of NAFTA to eliminate or reduce Canadian tariffs on dairy, poultry eggs and wine, as well as recently implemented barriers on imports of ultra-filtered milk.

According to analysts at Oxford Economics, procedural, timing, economic and political circumstances meant that Canada could secure a new trade agreement without having to bow down completely to US demands.

"Despite the Canadian economy’s small size relative to the US, we think Canada holds several key playing cards in these trade talks.

"Canada’s signature is needed. Trump has sweeping trade negotiating powers, but he doesn’t have the power to sign-off on a new bilateral deal with Mexico and Canada without Congressional approval.

"Mexico wants Canada in the deal. Several times during his call with Trump, Peña Nieto said that Canada's inclusion in the trade deal was essential."