Canadian Dollar and Mexican Peso Fall on Nervousness Over Nafta

11 Enero, 2018, 00:52 | Author: Kelly Blake
  • USDA undersecretary Ted Mc Kinney addresses AFBF

The Canadian government is prepared for the possibility U.S. President Donald Trump will withdraw from the North American Free Trade Agreement, senior officials say, though they aren't entirely convinced that he will. The report cited two government sources.

From September to October 2017 the value of USA freight flows to Canada was up 2.5% to US$49.7bn.

Talks to overhaul NAFTA between the U.S., Canada and Mexico began in August but have so far yielded few results.

That's when negotiators from all three countries are going to meet for their sixth and next-to-last sit-down on ways to upgrade and improve the 1992 treaty.

The Canadian dollar trades down 0.91% at 1.2575 per dollar.

But there's more to a NAFTA withdrawal than a Presidential declaration.

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The end of NAFTA?

Canadian officials say if President Trump does announce a United States withdrawal, it could be a negotiating tactic created to win concessions.

In response to the Reuters story, the White House said "there has been no change in the President's position on NAFTA", which offered little clarity as Trump has routinely threatened to walk away if he can not extract concessions from the other two trade partners.

But at the same time, Canada and Mexico have rejected most of the US proposals for NAFTA reforms, Reuters said.

The next round of NAFTA talks - the sixth so far - will be held in Montreal from January 23 to 28.

Negotiations are due to wrap up at the end of March.

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