- In an anticlimatic conclusion to the week’s top trade event, talks between the U.S. and Canada ended Friday without a deal on a new North American Free Trade Agreement, but the two parties were said to have made “some progress” and discussions are expected to continue next week.
- The Trump administration had given Canada until Friday to join a preliminary deal it reached earlier in the week with Mexico or risk being left out.
- Canadian Foreign Affairs Minister Chrystia Freeland is expected to brief reporters at 4:30 p.m. local time on Friday at the Canadian Embassy in Washington. She has been in Washington since Tuesday in an accelerated push to reach an agreement with the U.S. over revamping Nafta, after the US reached a bilateral deal with Mexico on Monday.
- According to the Wall Street Journal, the Trump administration will notify Congress on Friday that it’ll proceed with changes to Nafta with Mexico, and that it remains open to continuing negotiations with Canada.
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Update 2: As we noted earlier, Trump’s “hard” Friday deadline was really rather soft, and as Bloomberg reports, the trade talks will resume next Wednesday.
- *U.S.-CANADA NAFTA TALKS SAID TO RESUME NEXT WEDNESDAY
But there was good news according to Reuters:
- NAFTA TALKS SAID TO HAVE MADE SOME PROGRESS ON CORE ISSUES
And USTR Lighhizer confirms that talks “were constructive” and will continue, and the intention is to sign a trade agreement in 90 days.
- USTR LIGHTHIZER SAYS TRADE TALKS WILL CONTINUE WITH CANADA
- LIGHTHIZER SAYS CANADA TRADE TALKS CONSTRUCTIVE, MADE PROGRESS
- U.S. TRADE REPRESENTATIVE SAYS INTENTION WOULD BE TO SIGN TRADE AGREEMENT IN 90 DAYS: RTRS
Meanwhile as the WSJ notes, the failure of the two countries to bridge their differences this week means that President Trump is expected to send a formal notice to Congress later Friday stating that he is still intends to sign a revised version of the North American Free Trade Agreement by late November. That statement is likely to say he is willing to proceed only with Mexico, but that he is also open to continuing negotiations with Canada.
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Update: No deal.
If it was Trump’s intention to scuttle the US-Canada trade talks with the Bloomberg “leak” he succeeded: the WSJ reports that Nafta talks between the US and Canada ended with no agreement
- U.S.-Canada Talks Break Up With No Friday Agreement — Sources
- Trump Is Expected to Notify Congress of Plans to Proceed with Mexico-Only Deal to Replace Nafta — Sources
- Trump Announcement Is Expected to Suggest Canada Can Still Join Revised Nafta — Sources
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After several days of negotiations, and just hours before the deadline, Reuters reports the the Nafta trade talks between the US and Canada have concluded.
- U.S.-CANADIAN TRADE TALKS HAVE CONCLUDED -CANADIAN OFFICIAL: RTRS
- CANADA’S FREELAND HAS LEFT USTR AFTER TALKS WITH LIGHTHIZER
Reuters adds that Canadian Foreign Minister Chrystia Freeland will hold a press conference at 4:30pm (after the close).
It was unclear if a deal has been reached, although some speculate that if there was a deal, the press conference would include the US, and not just Canada, which “usually means bad news.”
Freeland hosting a press conference alone (without the US) is probably a tell. That usually means bad news.
— ForexLive (@ForexLive) August 31, 2018
Others have suggested that a deal may not have been reached and the talks will continue into the weekend.
The CAD is generally unchanged on the news.
More at 4:30pm when Freeland speaks.
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Author: Tyler Durden