The Canadian dollar and Mexican peso dropped yesterday, along with several key stocks across North America, after Canadian government sources revealed that Ottowa is "increasingly convinced" that President Donald Trump intends to pull the U.S. out of the North American Free Trade Agreement (NAFTA).
"A Canadian government official pushed back against a Reuters report, calling it "inaccurate" that the Government of Canada is "convinced" the U.S will soon pull out of NAFTA".
One of the sources, who works with the Canadian government, even said they were "sure" Trump will withdrawal from the pact and that they are planning for the announcement.
But trade disputes have broken out between Canada and the US, the most recent involving USA imposed duties against Canadian newsprint imports Wednesday. However, the President did not promise to not withdraw from the agreement.
Chrystia Freeland also told reporters that Canada had come up with some creative ideas in a bid to solve the toughest challenges facing negotiators when they meet for the sixth and penultimate round of talks to modernize the North American Free Trade Agreement later this month.
Talks to overhaul NAFTA between the U.S., Canada and Mexico began in August but have so far yielded few results.
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"It's under negotiation as we speak", he said. "But we're going to make it fair for you people again".