Possible Breakthrough in a Major NAFTA Obstacle

Dan Industry News Release, Trade

naftaOne of the biggest sticking points in the North American Free Trade Agreement (NAFTA) has to do with the auto industry. There’s a little more optimism about progress after Canada joined Mexico in indicating there may be room for negotiation in the auto sector.

The development comes just one day after markets dipped on Canada’s fear that the odds are rising on President Trump following through on his threat to walk away from the deal. He also suggests that officials are looking for progress during the next round of discussions in Montreal as a way to keep negotiations moving.

Two unidentified Canadian government officials told Bloomberg that their country is preparing new proposals related to automobiles at the Montreal negotiations. Mexico has also signaled that there may be room for a breakthrough in discussions on the automobile industry. Canada’s Foreign Minister, Chrystia Freeland, says they’ll bring some new ideas on some of the more contentious U.S. proposals, but she didn’t identify them. The two unidentified officials that spoke with Bloomberg say she’s referring to the auto sector.

Freeland also says the three countries are close to agreements on several of the “bread-and-butter” issues in the NAFTA discussions.

From the National Association of Farm Broadcasting News Service.