NAFTA deal still far from sewn up

Canadian Dollar Saved by Inflation Target Being Met but Outlook Looks Worrying

US threatens non-approval on NAFTA deal if there is no firm proposal in place in three weeks.

The North American Free Trade Agreement (NAFTA) is currently in the process of being renegotiated. NAFTA is a free trade deal between the Sates, Mexico and Canada. Trump has made very clear he is unhappy with the current deal and has called it “the worst trade deal in history.”

The results of the new negotiations could have huge ramifications fro the Canadian Dollar, the US is Canada’s largest trading partner. If the deal were to fall through CAD would lose significant value and there would be a sustained period of uncertainty as to how trade would progress.

There has been progress made of late. Mexico’s President, Enrique Pena Nieto is very keen to get the deal sewn up before 1st July, the Mexican election for obvious reasons. US trade representative, Robert Lighthizer has warned however if an agreement can’t be reached in the next three weeks the entire deal could collapse as approval from U.S congress could be refused.

Keep a close eye on developments as they unfold, this matter will have significant bearing on trading levels.

If you have a large currency transfer to perform in the coming days, weeks or months then I will be happy to speak to you directly as I will be willing to help you both with trying to time a transaction and getting you the best possible rate when you do come to trade. A small improvement in a rate of exchange can make a significant difference so for the sake of taking a few minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can contact me (Daniel Johnson) on dcj@currencies.co.uk and I will endeavour to get back to you as quickly as possible. Thank you for reading.