Canada convinced Trump will soon pull plug on NAFTA

P.E.I. MP Lawrence Mac Aulay was introduced as the first Canadian agriculture minister to speak at American Farm Bureau Federation convention

Canada convinced Trump will soon pull plug on NAFTA

According to data from the Bureau of Transportation, US freight flows within the North American Free Trade Agreement (NAFTA) region climbed to US$100.6bn in October.

Trade relations between the two countries have taken a dramatic turn this week, with Canada escalating its trade spat with the filing a World Trade Organization complaint over American duties against Canada and other countries.

A sixth round of negotiations will begin this month in Montreal.

Canada sends about 75 percent of its exports to the United States.

Mexico and Canada together represent almost one-third of total US agricultural exports.

"Despite the uncertainty surrounding NAFTA and rumors Mexico wouldn't be able to continue exporting to the United States, it's important to note that not only did we hit a record in exports but we also had record export numbers to the United States with almost 10 per cent growth", AMIA President Eduardo Solis said.

The fifth round of renegotiations concluded in late November with US Trade Representative Robert Lighthizer observing "no evidence that Canada or Mexico are willing to seriously engage on provisions that will lead to a rebalanced agreement".

Canadian officials, speaking to CBC News, said they are prepared for anything but have no reason to believe Trump will announce his intention to withdraw this month. The three countries have agreed to host joint negotiations through March.

But at the same time, Canada and Mexico have rejected most of the US proposals for NAFTA reforms, Reuters said.

The Canadian sources said that if Trump did announce the United States was pulling out, Canada would stay at the table, since the talks would continue at a lower level.

Prime Minister Justin Trudeau speaks during a town hall in Halifax on Monday, January 16, 2017.

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