U.S. and Canada Reach Trade Deal to Keep NAFTA Trilateral

September 30, 2018 09:11 PM
 
The U.S. and Canada have agreed on a trade deal that would save the North American Free Trade Agreement as a trilateral bloc, according to three people familiar with the matter.

(Bloomberg) -- The U.S. and Canada have agreed on a trade deal that would save the North American Free Trade Agreement as a trilateral bloc, according to three people familiar with the matter.

President Donald Trump has approved the developments and the expectation is that an agreement will be announced on Sunday night, according to the people, who spoke on the condition of anonymity. U.S. Trade Representative Robert Lighthizer and Canadian officials are working on the final touches.

U.S. and Canadian negotiators have been negotiating around the clock this weekend to make a Sunday midnight deadline that would allow the countries to sign the deal as the final act before Mexico’s outgoing President Enrique Pena Nieto leaves office at the end of November.

Reaching a pact with Canada allows the 24-year-old pact to remain trilateral and for the U.S. to check another box for its legislative process in the lead up to a congressional vote.

Trump has said he wants to rename the deal the U.S.-Mexico-Canada agreement.

Smoother Path

Some people familiar with the talks credited Trump senior adviser Jared Kushner for helping smooth the path toward a deal. When it looked like negotiations had stalled or broken down due to friction between the U.S. and Canadian sides, Kushner kept talks going with aides close to Prime Minister Justin Trudeau, including Gerald Butts and Katie Telford, three people said.

Lighthizer and Kushner were at the USTR office in Washington on Sunday afternoon negotiating final details by conference call with the Canadians in Ottawa. U.S. officials have been keeping Trump in the loop on every step since Friday, two people said.

U.S. lawmakers and business have urged the administration to keep Canada in the deal but the trilateral nature had been in jeopardy after Trump on Aug. 27 announced he reached a deal with Mexico that Canada could join if it’s willing to make concessions. They agreed to publish the text by the end of September.

The Canadian dollar was rallying on anticipation of a deal, strengthening 0.5 percent, while the Mexican peso gained abut 0.2 percent.

© 2018 Bloomberg

Back to news


Comments

 
Spell Check

Gerard
Sioux Falls, SD
10/1/2018 01:18 PM
 

  More than likely the prices for soybeans, corn, wheat and other farm commodities will go back up to previous price levels before the tariffs. I don't believe there will be any significant changes in price plateaus...supply and demand will prevail.

 
 
kerrlee
Scottsboro, AL
10/2/2018 12:19 PM
 

  Gerard, That would be great, but Mexico buys corn and .... Well, we can hope.

 
 
Peyton
Peronnes-Lez-Binche, PA
10/21/2018 03:36 AM
 

  It is appropriate time to make some plans for the longer term and it’s time to be happy. I’ve learn this post and if I could I wish to recommend you few interesting things or tips. Perhaps you could write subsequent articles regarding this article. I wish to read even more issues approximately it! Ahaa, its nice dialogue concerning this paragraph here at this webpage, I have read all that, so at this time me also commenting here. You made some good points there. I looked on the net for more info about the issue and found most individuals will go along with your views on this site. http://cspan.org

 
 
Close