World

Canada Preparing For US To Pull Out Of NAFTA Trade Deal

Canada Preparing For US To Pull Out Of NAFTA Trade Deal

President Donald Trump reiterated his threat to withdraw the USA from Nafta while saying that gains from a new deal could be used to pay for a wall at the Mexican border. It will be a positive sign if negotiators can close more chapters and agree to a way ahead on the most contentious issues, she said. "We make a good deal on NAFTA, and, say, I'm going to take a small percentage of that money and it's going toward the wall. Guess what? Mexico's paying".

Trump has been insistent throughout his presidency and campaign that Mexico will, in some form, pay for a wall along the U.S. -Mexico border.

Mexican officials have rebuffed that suggestion.

Shortly after Trump's inauguration a year ago, plans for a meeting between the president and his Mexican counterpart fell apart over the issue of paying for the wall.

One of the sources, Raul Urteaga, the head of worldwide trade for the ministry of agriculture, said: "If Trump announces a USA withdrawal from NAFTA, well at that moment the negotiations stop".

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The Trump administration began renegotiating the trilateral trade deal past year, and discussions are set to enter their sixth round this month.

Three Mexican sources, who know about the negotiations, then claimed Mexico would exit NAFTA if Trump chose to trigger the six-month process to withdraw from the pact.

"I think the American colleagues understand when you stand strong in sending a message that said, 'We will stand up for the forest industry, we will stand up for the aerospace industry, we'll stand up for Canadian workers", Champagne said.

He added that he will leave his decision on a deal "a little bit flexible" as Mexico has a presidential election this year, which "makes it a little bit hard for them". They have so far yielded little firm indication of whether a deal can be reached to update the pact, the officials said.