Canada convinced Trump will pull out of free trade deal

US likely to give 6 months' notice to withdraw from NAFTA, Bloomberg reports

Canada is increasingly convinced that U.

Canadian government officials say there's an increasing likelihood that US will give six-months' notice to withdraw from.

The latest lobbying effort could also be a way of building relationships in case the Canadian embrace fails to prevent Trump from ending NAFTA and Canada needs to establish a new bilateral trade agreement.

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Canada is still optimistic there could still be some sort of positive resolution to these fractious trade talks, the sources said, and will continue to pursue its aggressive outreach plans in the USA, which include meetings with US state governors and lawmakers in Washington.

The three NAFTA countries are set to meet for a sixth round of negotiations later in January, and Trump has maintained if the US can't get a better deal, he will withdraw from the pact completely. Talks to overhaul the trade agreement among the United States, Canada and Mexico began in August.

Reuters reported, citing two Canadian government sources, that Canada is increasingly convinced that Trump will pull the US out of the trade agreement.

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U.S. Trade Representative Robert Lighthizer said the WTO filing "could only lower U.S. confidence that Canada is committed to mutually beneficial trade". They have so far yielded little firm indication of whether a deal can be reached to update the pact, the Canadian officials said.

The Canadian dollar fell 0.7 per cent to C$1.2574 against the greenback at 4pm in Toronto. The Canadian officials said Wednesday they weren't sure how Mexico would react to any withdrawal notice but that Canada would keep negotiating after one was given.

"In my opinion, I think at a certain point Donald Trump will launch an intent to withdraw but the difference between the intent to withdraw and fully realizing that objective are very, very different", Dawson said in an interview with CBC's Power and Politics.

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