Published: Sat, January 13, 2018
Worldwide | By Gretchen Simon

NAFTA revisions could pay for border wall

NAFTA revisions could pay for border wall

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. "U.S. exiting NAFTA unilaterally would be very negative for the Canadian dollar and the Mexican peso". The currency started the year as the best performer among major currencies, extending the rebound since September, but lost the post after Wednesday's drop.

On Wednesday, a government source told AFP that Canada was bracing for the possible imminent United States withdrawal from the tripartite trade pact. While MXN was able to largely retrace its losses following denials from the White House that the President's position had not changed, CAD is still trading at notably lower levels this morning.

Freeland insisted that the WTO challenge is strictly in response to the "unfair and unjustified" duties imposed by the US on imports of Canadian softwood lumber, and is "on a quite separate track from the NAFTA negotiations".

Royal Bank of Canada's Chief Executive Dave McKay said on Tuesday he believed there was now a greater chance that NAFTA could be scrapped.

Trump has long called the 1994 treaty a bad deal that hurts American workers.

Mexico has said it would put forward a counterproposal on autos, though the industry has maintained a tough stance against the plan of U.S. President Donald Trump's administration in the run-up to the next round of talks in Montreal towards the end of January.

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Trump was attempting to rebut the claim made in a damaging new book that some of his aides doubt his fitness for office. Tapper also wanted Miller to respond to questions critics have asked over the president's mental stability.

General Motors Co shares fell 2.4 percent.

Trump also this week repeated his claims that the U.S.

The Canadian and Mexican currencies, as well as stocks of firms that rely heavily on North America's integrated economy, fell on Wednesday after government sources told Reuters they saw an increased likelihood of a US withdrawal. Speaking at an event sponsored by WisPolitics, a Wisconsin outlet for political news, Ryan said ending the free trade agreement would risk higher tariffs for cheese that American producers export to Mexico.

Such an announcement by Trump would trigger a six-month countdown to the U.S. exit from NAFTA.

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.

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