Canada and United States are set to tackle their contentious issues in bilateral talks on Wednesday, as the two nations work to salvage the North American Free Trade Agreement amid signs Ottawa was open to taking a more conciliatory approach.

After more than a year of talks, Mexico and the United States announced a bilateral deal on Monday, setting the stage for Canada to rejoin negotiations to modernize 24-year-old NAFTA which accounts for over $1 trillion in annual trade between the three nations.

Canadian Foreign Minister Chrystia Freeland told reporters on Tuesday that Mexico’s concessions on auto rules of origin and labor rights was a crucial breakthrough, clearing the way for Ottawa to resume talks with United States this week.

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