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Canada convinced Trump will soon pull plug on NAFTA

Canada convinced Trump will soon pull plug on NAFTA

The U.S. dollar spiked against its Canadian counterpart and the Mexican peso on a Reuters report that Canada is increasingly convinced that President Donald Trump will announce that the U.S. will exit the North American Free Trade Agreement. Trade officials from Mexico, Canada and the United States have put a March deadline on completing negotiations on NAFTA.

Trump fell short Monday on making any firm promises that a NAFTA update could be done, although he told farmers he wanted a better deal for them during remarks to the American Farm Bureau Federation convention in Nashville, Tenn.

Canada and Mexico have rejected most of the U.S. proposals for NAFTA reforms, leaving officials with a big job if they are to bridge the large differences at the 23-28 January talks in Montreal.

The source said Canadian ministers felt a withdrawal could be created to show Trump's base that he was keeping his promises and also to put pressure on the negotiators.

The Loonie closed at an average trading price of 80.03 cents United States, down 0.27 of a USA cent.

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Royal Bank of Canada's Chief Executive Dave McKay said on Tuesday he believed there was now a greater chance that NAFTA could be scrapped.

Canadian government bond prices rose across the yield curve and railway, pipeline and other trade-sensitive stocks weighed on the country's main index.

Mexico's currency also weakened, before trimming losses, while the S&P/BM IPC stock index was down about 1.85 percent.

Though Trump has repeatedly threatened to withdraw from NAFTA, one of the Canadian officials who spoke with the Post Wednesday noted that Trump avoided repeating the threatin his most recent remarks about the trade deal.