Canada Working on Plan B if US Pulls Out of NAFTA

Canada is preparing for the worst in case U.S. President Donald Trump decides to pull his country out of the North American Free Trade Agreement (NAFTA), said a Canadian NAFTA advisor on Sunday.

“The consensus felt like it’s not if, it’s when he’s going to pull the plug,” said Rona Ambrose, member of Canada’s NAFTA advisory council and former interim leader of the Conservative Party and the leader of the opposition between 2015 and 2017.

usdcad Canadian dollar graph, January 22, 2018

Ambrose’s remarks came as the sixth round of talks between Canada, Mexico and the United States began in Montreal on Monday. The talks are set to wrap up on Jan. 29.

“I really believe Canada is doing everything that we can,” Ambrose added. “I think we just need to ramp up all those measures even more in the next week or so.”

Canadian Foreign Affairs Minister Chrystia Freeland, who is Canada’s lead negotiator on NAFTA, said that Canada is “absolutely” preparing for a Plan B.

“It is no secret — in fact, it is absolutely a matter of public record, that the U.S., including the president, has said quite clearly that they have thought about invoking Article 2205, which would set the clock ticking on the six-month withdrawal notice,” she noted.@ “I think that it is only sensible and prudent for us to take the president at his word. So we are absolutely prepared for every eventuality,” she said.

via Xinhua

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza