USMCA Win Does Not Mean US Softening on China

A last-gasp deal to salvage the North American Free Trade Agreement (NAFTA) does nothing to improve the prospect of a meaningful breakthrough in the U.S.-China trade war, one market expert told CNBC on Monday.

Just hours before a midnight deadline, U.S. and Canadian officials reached a deal to revamp NAFTA, which also includes Mexico, after more than a year of grueling negotiations.

Until recently, Canada appeared to be on the brink of being excluded from a final agreement but negotiations over the weekend eventually culminated in all three countries signing up to the new United States-Mexico-Canada (USMCA) accord.

However, one market expert cautioned the new NAFTA deal shouldn’t be seen as a sign that there could soon be a breakthrough in troubled trade relations between the U.S. and China.

“I do believe that unfortunately the China story is a lot more complicated (than NAFTA talks),” Luis Costa, head of CEEMEA FX and rates strategy at Citibank, told CNBC’s “Squawk Box Europe” on Monday.

via CNBC

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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