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Canada has said there is still room to salvage the North American Free Trade Agreement as talks with the US continue.

"We continue to work hard,” Canadian Foreign Minister Chrystia Freeland said after meeting with US Trade Representative Robert Lighthizer.

“There is good faith and good will on both sides.”

US officials have not commented on Wednesday’s meeting, which comes after Donald Trump said he was willing to drop Canada from the $1.2tn pact after reaching an agreement with Mexico last week.

However, Canadian Prime Minister Justin Trudeau on Tuesday suggested there would be little compromise on his red-line issues, such as recently imposed steel and aluminium tariffs.