Canadian Foreign Minister Says US Has Agreed to Continue NAFTA Talks

Canada agreed with the United States on Thursday that slow-moving talks to update NAFTA should continue although they did not set a date for the next round, a senior official said in remarks casting further doubt on the chances of a deal this year.


usdcad Canadian dollar graph, June 14, 2018

Negotiations to modernize the North American Free Trade Agreement started last August and were initially scheduled to finish by the end of December.

That deadline has been extended several times as Canada and Mexico struggle to accommodate far-reaching U.S. demands for change such as a sunset clause that would allow one nation to pull out after five years. Canada and Mexico reject the idea.

U.S. officials had already made clear time was running out to secure a deal the current Congress could vote on. Democrats – who tend to be less enthusiastic about free trade than Republicans – are expected to make gains in midterm elections in November which could make passing a new NAFTA harder.

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