U.S. trade chief says Canada running out of time on trilateral NAFTA deal

NEW YORK (Reuters) - Canada is failing to make concessions needed to reach a deal with the United States for a trilateral NAFTA pact, and is running out of time before Washington proceeds with a Mexico-only agreement, U.S. Trade Representative Robert Lighthizer said on Tuesday.

Lighthizer, speaking to the Concordia Summit in New York, said there was "some distance" between the United States and Canada on North American Free Trade Agreement issues, including dairy and trade dispute settlement.

"The fact is, Canada is not making concessions in areas where we think they're essential," Lighthizer said. "We're going to go ahead with Mexico. If Canada comes along now, that would be the best. If Canada comes along later, then that's what'll happen."

(Reporting by David Lawder; Editing by Bernadette Baum)