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Canada convinced Trump will soon pull plug on NAFTA

12 Janvier 2018

It is ironic that in the United Kingdom, there are people suggesting their country should join NAFTA, the North American Free Trade Agreement, to compensate for Brexit.

Ottawa announced the filing on Wednesday, arguing that United States procedures to impose the punitive tariffs violate worldwide trade rules.

President Donald Trump has to give six months' notice before backing out of NAFTA, which he says hurts American workers. Washington might use the move as a sleight of hand when seeking to gain some leverage over Mexico and Canada in the negotiations to update the trade pact that has been in existence for 24 years.

With the exception of metals and materials, few sectors on the commodity-heavy TSX finished the day out of the red, as the February gold contract gained $5.60 (U.S.) to $1,319.30 an ounce. This area of law hasn't been tested much - it's pretty rare for a US president to be more hostile to trade deals than Congress, which is traditionally more protectionist. "When Mexico is making all of that money, when Canada is making all of that money, it's not the easiest negotiation". He doesn't believe the USA will rip up NAFTA, saying the economic damage from such a move would be "severe".

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Spracklin estimates that the two railways only handled 38 per cent of peak capacity previous year transporting 35,000 to 40,000 carloads, compared to 110,000 carloads during the peak in 2014.

Several articles on Market Intel reviewed the importance of NAFTA to fruit and vegetable trade including, Fruits of the NAFTA Vine, NAFTA: Veggie Tales, and U.S. Apples and NAFTA. For example, China wants to displace the U.S.as the world's tech leader, and the European Union just inked a trade deal with Canada and is pushing to complete a deal with Mexico before the end of the year. At stake is a relationship between the three nations whose annual trade in goods totals about US$1 trillion - and even the business models of companies such as Ford Motor Co. and General Motors Co. that have adapted their supply chains to take advantage of the trade zone. Combined they represented almost 50 percent of all US fruit and vegetable exports.

Canadian government bond prices rose across the yield curve and railway, pipeline and other trade-sensitive stocks weighed on the country's main index.

Withdrawal from the three-nation deal would take six months and would likely raise tariffs on USA exports headed north and south.

Canada convinced Trump will soon pull plug on NAFTA