Canada preparing for possibility Trump will pull out of NAFTA

The potential dismantling of the North American Free Trade Agreement poses the biggest risk to Canada's railways not benefiting this year from healthy economies and higher

The potential dismantling of the North American Free Trade Agreement poses the biggest risk to Canada's railways not benefiting this year from healthy economies and higher

"What we are depending on is that facts should win the day", David MacNaughton, Canada's ambassador to the USA, told WSJ.

Canadian government officials say there's an increasing likelihood that US will give six-months' notice to withdraw from.

"NPPC continues to urge the Trump administration to remain committed to NAFTA and to maintain zero-duty market access for pork exports to Canada and Mexico", said NPPC.

Canadian officials say they expect contentious issues as part of any trade negotiation but are ready to work with the USA and Mexico toward an updated NAFTA.

But trade disputes have broken out between Canada and the US, the most recent involving USA imposed duties against Canadian newsprint imports Wednesday. US Trade Representative Robert Lighthizer called that a "broad and ill-advised attack".

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

Soon after the story, the Toronto Star reported that while Canada is "actively preparing" for a possible withdrawal, officials aren't "convinced" that Trump will abandon the agreement. They have so far yielded little firm indication of whether a deal can be reached to update the pact, the officials said. The Canadian officials said Wednesday they were not sure how Mexico would react to any withdrawal notice, but that Canada would keep negotiating after one was given.

Reports of NAFTA's possible demise, meanwhile, sent the Canadian and Mexican currencies tumbling, and the U.S. dollar rising from Can$1.2432 at 1200 GMT to Can$1.2554 at around 2030 GMT.

"It's under negotiation as we speak", he said. A withdrawal notice doesn't mean Nafta would be killed - a country can give notice and then not actually leave.

"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 during a speech at the American Farm Bureau Federation convention in Nashville, Tenn., Monday.

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