Canadian Dollar surges broadly on news that the US and Canada have finally agreed on a deal to update NAFTA, just ahead of US imposed deadline. The legal text would be published within hours just of meet the deadline for US Congress to to complete before Mexico’s outgoing President Enrique Pena Nieto leaves office at the end of November.
According to unnamed sources, Canada will give the US access to 5% of its dairy markets, same as it granted to Europe with CETA and Pacific-Rim nations with TPP combined. In turn, the US agreed to keep the Chapter 19 dispute resolution mechanism. Also, both sides agreed to put a cap on auto exports to the US, at around 140% of current production level, free of any auto tariffs that the US might impose. Canada also agreed to a quota of steel and aluminum tariffs to the US in exchange for exemption from tariffs.
