Citibanamex: US, Mexico Nafta talks could make it easier for Canada

Author: John Crabb | Published: 4 Sep 2018

US President Donald Trump’s announcement of a so-called bilateral big deal with Mexico was not enough to spur Canada into accepting renegotiated terms for the North American Free Trade Alliance (Nafta).

All three countries failed to agree new terms before the self-imposed deadline of August 31, meaning that the existing international trade treaty remains in place. But the negotiations between the US and Mexico have recently taken a more material approach than previously, trying to plug several critical issues. The preliminary agreement between the US and Mexico announced on Monday August 27 addressed how to remove pending issues, which suggests that it will remain relatively easy for Canada to join the agreement relatively quick.

"For me Canada joining is still at the centre of this argument," said Sergio Luna, head of Citibanamex Research. "Obviously there will be a few issues concerning timber perhaps, that need to be ironed out....