Canada expects withdrawal of U.S. from NAFTA

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Canada expects withdrawal of U.S. from NAFTA

President Donald Trump reiterated his threat to withdraw the USA from Nafta while saying that gains from a new deal could be used to pay for a wall at the Mexican border. Mexico also has reached out to China to compensate for any loss of investment from the United States. Dawson asked. She sees Canada resisting changes that would open its dairy and lumber industries to more competition and cultivating new ties with countries in Asia and Europe if the United States withdraws from NAFTA.

U.S. House Speaker Paul Ryan said the biggest problem with the North American Free Trade Agreement "comes from the North", with Canadian dairy producers dumping low-priced products on the market to compete with Wisconsin farms. "I think all of us are mindful of the Mexican elections".

Among the issues the three NAFTA partners have been unable to agree on are proposed changes to the chapter on dispute settlement, the inclusion of a so-called "sunset clause" that would subject the deal to review every five years, and the automotive sector trade deficit.

Farmers have already been hit with commodities plunges and have been pleading with the president - through members of Congress and senior members of his administration - not to compound the crisis by threatening exports.

Trump appeared at a farm conference this week and made less-aggressive-than-usual remarks about NAFTA. Observers still view a USA withdrawal notice as a potential bargaining ploy at some point.

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Canada will suggest that the traditional standards for calculating vehicle parts is outdated, and leave out increasingly important intellectual-property contributions where the U.S.is a world leader. Ujczo was at that conference, then left for a business trip to Canada and was struck by the urgent tone of news reporting suggesting a pullout was imminent.

"I was stunned", said Ujczo. He's weighing both the political and economic consequences of issuing the notice to withdraw...

In a letter past year sent to the governors of NY and Wisconsin, the Canadian ambassador to Washington, David MacNaughton, cited data showing dairy trade between the countries benefits the U.S.by a five-to-one margin. "Most likely the Canadians are reacting to the President's negotiating posture". In any case, Trump may have trouble persuading Congress to scrap the treaty, which could be required under USA law. "Insiders look for progress", said the source.

The official said Ottawa is not convinced Trump will pull the plug on NAFTA, as was reported Wednesday, but that there is a "heightened probability" such an outcome may come to pass, regardless of progress at the negotiating tables in Montreal on January 23.

"I thought that was a sensible suggestion from the President".

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