NAFTA: Canada ready to face a us withdrawal

Photo: Andrew Caballero-Reynolds Agence France-Pres
The negotiators, canadian, american and mexican, asked by chrystia Freeland, Robert Lighthizer, and Ildefonso Guajardo Villarreal, last October

Ottawa — Canada is “prepared” for a possible withdrawal of the United States of the treaty of the free trade Agreement north american (NAFTA), but has no indication on the timing of an announcement, said on Wednesday a government source in Ottawa.

 

“The canadian government is aware of the possibility that the president, Donald Trump announces the withdrawal of the United States of NAFTA. We are ready to this possibility, ” said this source to the AFP.

 

The sixth session of the renegotiation of the NAFTA agreement between Canada, the United States and Mexico must take place at the end of January and ” we’re ready for this “, stressed the responsible canadian.

 

Litigation

 

This new episode adds to the many disputes between the United States and Canada, and scored again on Wednesday with the imposition of countervailing duties on newsprint canada, or by the trigger to the world trade Organization (WTO) for a period of consultations on trade disputes between the two countries.

 

Rumors of an ad next to an american withdrawal from NAFTA pushed the us dollar on the foreign exchange market on Wednesday.

 

Of 1,2432 canadian dollar on Wednesday to 12: 00 pm GMT, the u.s. dollar rose to 1,2554 CAD to 20: 30 GMT. The mexican money, 19,15 pesos for a dollar, is spent 19,37 pesos.

 

Rise of protectionism

 

In accordance with a commitment in his campaign, the president, Donald Trump had forced its two partners to come around the table to renegotiate the terms of a free trade agreement dating back to 1994. Last April, he had stated that ” if we are not able to reach a fair agreement for all, we will put an end to the NAFTA “.

 

In the fall, the three countries are given until the end of march to agree on the modernization of the NAFTA.

 

Since his arrival at the White House, the administration, Trump has decided to the many protectionist measures to protect its industries and its jobs. The us car manufacturers had thus, under the urging of Donald Trump, decided to invest in their factories in the United States, to the detriment of their facilities in Mexico and Canada.

 

After threatening the milk producers of canada, the president Trump attacked the imports of lumber from Canada.

 

The United States has imposed anti-dumping taxes and countervailing duties on the grounds that the canadian forest have selling prices benefit from low production costs through the fees minimal for the exploitation of the forests of the public domain.

 

In the fall, it is the american manufacturer Boeing has obtained from its government to impose a tax of 300 % on the aircraft of the canadian manufacturer Bombardier sold in the United States.

 

Complaint to the WTO

 

In the Face of such trade sanctions, the government of canada complained to the WTO, relying on previous decisions in his favor on litigation precedents, and more especially on the wood construction, litigation, and recurring for more than three decades.

 

On Tuesday, the canadian minister of foreign Affairs, asked by chrystia Freeland, which was the business case with the United States in the portfolio, was again in Washington to advocate on behalf of canadian interests by elected representatives and pressure groups.

 

“We are determined to make real progress” during the negotiations in late January in Montreal, had assured Ms. Freeland.

 

The economist Every Shenfeld of CIBC said on Wednesday that a us withdrawal from NAFTA is a “negative” for the canadian central bank, ” which has assumed in its forecasts the status quo in trade relations “.

Share Button