US to pull out of NAFTA? Canada believes so
Ottawa/Washington, Jan 11 (IBNS): Canada seems to believe that the United States will pull itself out of the North Atlantic Free Trade Agreement (NAFTA) by the end of January, according to Financial Post.
Canada, Mexico and the US are scheduled to meet for the last round of negotiation over NAFTA in January end.
However, Canada feels that the US will pull itself out of the agreement in the last round of talks only, Financial Post reported.
Following the news, both Canadian and Mexican currencies have weakened in respect to the US dollars.
The trade relations between Canada and the US took a turn this week after Canada filed a World Trade Organisation complaint over America's duties against Canada.
The US has hit back by calling the move as "broad and ill-attacked attack".
Canadian Prime Minister Justin Trudeau recently, early in this month, faced heat from US President Donald Trump, who acclaimed the former saying "a nice guy" but also has hit out at his counterpart over their differences on "trade deficit" discussions, media reports said.
Referring to Trudeau, Trump said: "I like the prime minister very much. Prime Minister Trudeau. Nice guy. Good guy. No, I like him. But we had a meeting... He said, 'No, no, you have a trade surplus.' I said, 'No we don't.' He said, 'No, no you have a trade surplus."
NAFTA is an agreement which came into force from January 1994 by Canada, Mexico and United States creating a trilateral trade bloc in North America.
For more than two years, US President Trump criticised the agreement and also hinted to take some serious steps being in the administration or at least send some ultimatums.
Trump reportedly wants the treaty to be more fair.
Both Canada and the US differ in the climate change.
Amid the ongoing negotiations in the North Atlantic Free Trade Agreement (NAFTA), Canadian Foreign Affairs Minister Chrystia Freeland, in November, said the country can't agree to extreme proposals put forward by the US, media reports said.
After the fifth round of talk in Mexico city, Freeland told media: "There are some areas where some extreme proposals have been put forward, and these are proposals that we simply cannot agree to."
Freeland even said certain proposals could become detrimental to the Canadian auto-industry.
When asked about whether the country should look forward to have a future without NAFTA, Freeland told media, "..hope for the best and prepare for the worst and Canada is prepared for every eventuality".
(Reporting by Suman Das)
Image: facebook.com/DonaldTrump
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