Canadian Trade Problems Don’t Stop with NAFTA

Trade challenges from U.S. firms will continue to cause turbulence for Canada even if talks to modernize NAFTA are successful, a senior Canadian government official said on Tuesday.

Canada sends 75 percent of its goods exports to the United States and is vulnerable to what Ottawa complains is increasing U.S. protectionism since President Donald Trump took power in January 2017.

Talks to update the North American Free Trade Agreement are moving slowly as Canada and Mexico seek to address a series of radical U.S. demands for change. The negotiations were supposed to wrap up by end-March look set to overrun by months.


usdcad Canadian dollar graph, February 13, 2018

“Even if a new NAFTA were to be signed tomorrow I think we would still face a lot of turbulence in our relationship with the United States on trade,” said Timothy Sargent, the top bureaucrat in Canada’s Trade Ministry.

Sargent, speaking to an Ottawa conference organized by the Canadian Global Affairs Institute, noted recent U.S. moves to impose duties on Canadian softwood lumber, commercial airliners and some paper products. All were prompted by complaints from American firms.

Sargent also cited Trump’s recent move to place duties on imports of solar panels.

via Reuters

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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