Photo: Chris Young The canadian Press
The United States requested, in particular to a strong increase in u.s. content minimum in the manufacture of automobiles.
The rumors on the next move that will make the government Trump in the renegotiation of the NAFTA went in all directions, Wednesday, some pointing to an imminent release of the United States of the trade agreement.
The ball was launched by the news agencies Bloomberg and Reuters, both of which have cited two canadian government sources anonymous under which Ottawa would have more and more the conviction that Washington apprêterait to announce his intention to withdraw his country from the free trade Agreement north american (NAFTA). According to these sources, this announcement would be expected around the holding of the sixth round of negotiations scheduled between Canada, the United States and Mexico, to Montreal, from 23 to 28 January.
Two other sources of government just as anonymous, but quoted by The canadian Press, have denied this rumor, saying instead that opinions were shared in Ottawa between those who think that the Americans have already made the decision of their removal from NAFTA and others who think that the matter is far from settled in their head and that this uncertainty could last for months.
The main interested parties have hardly helped to clarify the situation. A spokesman for the White House has indicated that ” the president’s position on NAFTA has not changed “. Gold president Donald Trump has repeatedly reiterated that his country would leave the bargaining table and withdrew from the agreement if he failed to get what he wanted.
The announcement of the withdrawal of the United States of NAFTA would be followed by a period of six months before entering into force.
Chills in the Stock market
The flow of rumors has produced its effect on financial markets Wednesday. The canadian dollar traded at an average price of 80,03 ¢US, down from 0.27 ¢ compared to its average price of the previous day. The composite index of the Toronto stock Exchange has rendered, about him, 71,29 points to 16 247,95 points. The u.s. Stock market has also fallen slightly, the S P 500 loser of 0.11 % to 2748,23 points, reacting to the history of the american release of the NAFTA, but also a other rumor about the possibility that China could slow down, or even suspend the purchase of us Treasury bills.
The fifth round of the renegotiation of the NAFTA was concluded at the end of the month of November in Mexico without the parties having been able to advance an inch on the issues in dispute. Accused person to make excessive demands just to have the excuse to conclude to the failure of the fiscal year, the american camp application, including the dismantling of the system of supply management in the canadian agricultural sector, a sharp increase in the u.s. content minimum in the manufacture of automobiles, the elimination or neutralization of dispute settlement mechanisms, a tightening of access to the market of public contracts, american and the automatic end of the agreement every five years to less than three countries not renew it.