Canadian Dollar, Stocks Dip on NAFTA

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The key issue will be whether the USA raises tariffs on Mexican and Canadian goods, many of which cross the border duty-free under Nafta.

Ottawa announced the filing on Wednesday, arguing that USA procedures to impose the punitive tariffs violate global trade rules.

Separate reports from Reuters and Bloomberg say two Canadian government sources believe it's likely that U.S. President Donald Trump will give six-months' notice to withdraw from NAFTA in late January.

Canada and Mexico aren't interested in a trade agreement with that outcome, Verheul told MPs.

-Mexico probably walks: Insiders familiar with the Mexican negotiators' strategy are adamant: they will leave the negotiating table if Trump triggers Article 2205.

Bruce Heyman, who was USA ambassador to Canada under former President Barack Obama, warned the Trump administration about harming America's strong trade relationship with the world's 10th-largest economy north of the border. NAFTA has allowed factories to settle where it is most cost-efficient, to make cars, televisions and other goods for U.S., Canadian and Mexican consumers at the lowest possible prices.

Amongst the most divisive proposals are the plans to have rules of origin for goods where minimum levels would be set for US content for autos, a clause that would end the trade pact if not renegotiated each five years, and ending the Chapter 19 mechanism for disputes.

A kind of Singapore south of the US border.

Spracklin estimates that the two railways only handled 38 per cent of peak capacity past year transporting 35,000 to 40,000 carloads, compared to 110,000 carloads during the peak in 2014.

"The closer the USA and Canada work together to address common challenges, the more we can grow our economies", he said. Wheat exports to NAFTA countries were the highest in eastern portions of the Pacific Northwest and Central Plains, Figure 3. NAFTA has played a key role in this export growth, as well as in the creation of the nearly 300,000 Nebraska jobs supported by global trade. The generics industry within the NAFTA countries had a total market value of $105.4 billion in 2015.The Mexico was the fastest growing country, with a CAGR of 14.2% over the 2011-15 period.

During 2016, $4.7 billion in US dairy products were shipped to Mexico and Canada, two of the top three dairy export markets.