The Real NAFTA Problem Is Canada, Not Mexico, Paul Ryan Says
Jan 13 2018
Canada's dollar and Mexico's peso dropped and Mexican stocks retreated following reports on Wednesday that Canada sees an increasing chance the USA will exit Nafta.
Canada has so far largely shunned confrontation with Washington, stressing instead the merits of NAFTA and free trade as Canadian Prime Minister Justin Trudeau makes efforts to forge closer ties with Trump. Those trends could offset some of the negative consequences from the loss of NAFTA trade, he said.
Mexico's Economy Minister Ildefonso Guajardo, who heads his country's negotiating team, told reporters earlier this week that 10 of the 30 chapters that required updating are ready to be closed at the Montreal gathering.
Trump appeared at a farm conference this week and made less-aggressive-than-usual remarks about NAFTA. One that looks interesting to us at present is a CAD vs. RUB vol spread. He also expressed a desire for a quicker deal, to calm markets. "He knows where he wants to be and he's going to negotiate until he gets what he wants", said Burns.
"As the Administration continues to renegotiate NAFTA, I expect President Trump to keep the pledge he made today to make trade deals that don't harm agriculture", Grassley wrote.
Trump has long called the 1994 treaty a bad deal that hurts American workers.
"We've been talking with Canadian stakeholders and we have some new ideas that we look forward to talking with our USA and Mexican counterparts about in Montreal". Trump would like to see up to 85 per cent of all components in autos being sourced from within the NAFTA region, with 50 per cent of the content coming from the U.S.
"There's real concern in the manufacturing committee and the agricultural committee that [leaving NAFTA] would impact the economy in a very negative way", Sen. Such scenario may also face resistance in the US Congress. He added that he understands it's tough for Mexico to deal with these negotiations during its current election.
Saskatchewan's premier says he is "greatly concerned" about recent reports suggesting the United States plans to withdraw from a landmark free trade deal that has been in place for nearly a quarter of a century.
GOP lawmakers view Trump's threats more as a negotiating tactic than a serious consideration, but Trump has proven his willingness to pull the trigger on impactful policy questions without much warning in the past.
Canadian government bond prices rose across the yield curve and railway, pipeline and other trade-sensitive stocks weighed on the country's main index.
"You may not be able to put the NAFTA back into that box once it's open, and anti-trade momentum takes over..."