Analysts at Rabobank note that yesterday, Canadian Prime Minister Trudeau once again emphasised that they will not sign a deal that will inherently be against Canada’s economic interests.
Key Quotes
“Mr. Trudeau named a few aspects of the current draft agreement that prevent him from signing the proposal. As was already well-known, the first red line revolves around the anti-dumping panels. Canada considers these dispute panels essential to warrant fair trade.”
“A second issue is apparently Canada’s cultural sector, which Trudeau wants to be exempt from not-NAFTA. Guess he’s not a fan of Hollywood movies and US TV formats.”
“So as US-Canada trade negotiations continue, there is still enough to talk about. The persistent uncertainty with respect to NAFTA -disagreement about dispute panels almost prevented the original NAFTA accord from being signed as well- are weighing on markets. Equity indices on both sides of the border were down on the day.”
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