Canada More Convinced Trump Will Withdraw from NAFTA

Canada More Convinced Trump Will Withdraw from NAFTA

Canada More Convinced Trump Will Withdraw from NAFTA

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.

Officials are due to meet for a sixth and second-last round of scheduled negotiations on updating NAFTA in Montreal from January 23-28, but the talks are in trouble.

Chicago Mercantile Exchange hog futures on Thursday shed more than 2 percent of their value on Thursday, partly pressured by Canadian government worries that U.S. President Donald Trump intends to scrap NAFTA talks, said traders.

"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.

Laura Dawson, director of the Canada Institute at the Woodrow Wilson Center for Scholars, and colleague Duncan Wood, director of the Mexico Institute at the center, expressed pessimism that NAFTA could be saved.

Farm states have warned him that triggering the NAFTA withdrawal clause to scare Canada and Mexico into concessions would backfire - they say it would also scare foreign buyers of American goods, leading them to seek new suppliers.

"On NAFTA, I am working very hard to get a better deal for our country and for our farmers and for our manufacturers", Trump said in his remarks, this time omitting his common suggestion that he may end up leaving the trade agreement regardless. Mexico also has reached out to China to compensate for any loss of investment from the United States.

"The government is increasingly sure about is now planning for Trump to announce a withdrawal", one of the sources, who asked to remain anonymous because of the sensitivity of the situation, said.

In fact, Wood said, he knows of one company that has chose to build a new factory in Europe rather than North America because of the uncertainty surrounding NAFTA.

Mexico's Economy Ministry declined to comment on the report, a ministry spokesman said.

In the interim, Trump has requested requested approximately $18 billion for the wall.

Notwithstanding the risk posed by NAFTA, Miller said there are signs of a manufacturing revival in the United States due to recently passed tax reform and continued growth in low-priced domestic oil and gas supplies.

Under the accord, the U.S., Canada or Mexico can withdraw after giving six-months' notice.

"The Canadians are getting tougher ... they've been more aggressive in their response, in their threats, than perhaps people have realized", he said in a phone interview.

"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".

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