Canadian PM Says No Deal is Better than a Bad Deal

Justin Trudeau said on Wednesday that it may be possible to reach a deal on Nafta ahead of Donald Trump’s Friday deadline.

“We recognize that there is a possibility of getting there by Friday, but it is only a possibility, because it will hinge on whether or not there is ultimately a good deal for Canada,” the Canadian prime minister said at a press conference in northern Ontario. “No Nafta deal is better than a bad Nafta deal.”

The Canadian prime minister’s optimism was echoed later on Wednesday by Trump, who told reporters at the White House “I think Canada very much wants to make the deal”.

usdcad Canadian dollar graph, August 30, 2018

But, Trump warned, “it probably won’t be good at all if they don’t”.

The US and Canadian leaders’ comments came hours after trade officials resumed negotiations in Washington on US-Mexico drafted revisions, dubbed The United States-Mexico Trade Agreement by the US president. Canadian negotiators must complete that process by Friday so the revised trade pact can come into effect before Mexico’s change of government later this year.

via The Guardian

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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