Canada's Latest Effort To Save NAFTA Is Sure To Work

11 January, 2018, 09:33 | Author: Bert Pena
  • Canada criticizes US softwood lumber duties, vows to resist

Six Republican senators met with President Trump and Vice President Pence on Thursday last week to advocate for preserving the North American Free Trade Agreement (NAFTA), reports the National Pork Producers Council.

The sixth round of talks is set to begin January 23 in Montreal.

As word of the news spread, the Canadian dollar fell 0.8 percent to CAN$1.2567, its lowest level of the year. General Motors Co slid as much as 3.3 per cent while auto-parts stocks also fell, paced by Lear Corp Canada's S&P/TSX Composite Index extended declines after the news, dropping as much as 0.6 per cent.

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.

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It was also announced Wednesday that Canada had filed a complaint with the World Trade Organization (WTO), claiming the US had committed almost 200 violations of global trade rules. They have so far yielded little firm indication of whether a deal can be reached to update the pact, the officials said. The US is insisting on a five-year automatic termination clause, stricter rules on autos, government procurement and dairy, and the overhaul or elimination of dispute panels.

Trump has said many times he would pull the nation out of the NAFTA deal if he couldn't see a way make the deal fairer for the United States. A party's withdrawal takes effect six months after it provides written notice to the other member countries. Canada is ramping up the outreach effort because "while we are doing a better job of this, and getting people's attention, we are not where we need to be", MacNaughton said.

"The Canadian government is aware of the possibility that President Trump may announce the United States' withdrawal from NAFTA", a senior government official said on condition of anonymity.


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