Canadian Dollar trades firmer in Asian session today and remains the strongest one for the week. All eyes are on the trade negotiations between Canada and the US. Canadian Foreign Minister Chrystia Freeland, who cut short a European trip to Washington, said she had “very constructive meeting” with US Trade Representative Robert Lighthizer yesterday, and the meeting will continue today. She failed that Mexico had made some “significant concessions” in the are of labor and auto rules of original. And that has “really paved the way for what Canada believes will be a good week”.
Dairy products is believed to be a key area that the US will press Canada on. White House top economic adviser Larry Kudlow said in a TV interview that “there’s a word that Canada has trouble with and it’s M-I-L-K. Milk. Anything to do with milk and dairy — they have this government-run, centrally planned system and some tariffs run upwards of 300 per cent. They’re going to have to fix that.” And, Kudlow warned that “the president did say if he cannot satisfactorily negotiate with [Canada] he may have to go to a large 20 to 25 per cent tax on Canadian automobiles headed for the U.S.” Trump also imposed a Friday deadline for Canada to join the U.S, and Mexico, which is when the administration plans to give Congress its mandatory 90-day notification of the new trade deal.
According to a report by the Globe and Mail, Canada is ready to make a major concession on Diary products.
