U.S. likely to give 6 months’ notice to withdraw from NAFTA, Bloomberg reports
Posted January 10, 2018 11:50 am.
Last Updated January 10, 2018 1:18 pm.
This article is more than 5 years old.
The federal government is increasingly worried that the US will pull out of NAFTA.
Speaking on condition of anonymity, officials tell Bloomberg they see a greater than 50 per cent chance that US president Donald Trump will give six-months’ notice to withdraw from North American Free Trade Agreement.
News sent the Canadian dollar tumbling along with yields on Canada’s government bonds.
The loonie fell 0.8 per cent to C$1.2567 against the US dollar shortly before 11:30 a.m. Pacific.
The rate on Canada’s two-year government bonds declined seven basis points to 1.73 per cent, dropping from a six-year high reached Tuesday.
Bloomberg’s report comes on the heels of Canada escalating a variety of trade disputes with the US by complaining to the World Trade Organization, a move that prompted the US Trade Representative to call it a, quote, “broad and ill-advised attack.”
Talks to overhaul NAFTA between the U.S., Canada and Mexico began in August but have so far yielded few results. A sixth round of negotiations will begin this month in Montreal.
More to come
