Peso, Loonie Drop After NAFTA Renegotiation Executive Order Headlines

Tyler Durden's picture

Confirming his campaign rhetoric and inaugural address tone, President Donald Trump is expected to sign an executive order as early as Monday to renegotiate the North American Free Trade Agreement (NAFTA) with Canada and Mexico, according to NBC News' Kristen Welker.

President Donald Trump is expected to sign an executive order as early as Monday stating his intention to renegotiate the free trade agreement between the United States, Canada and Mexico, a White House official told NBC News.

 

Eliminating the North American Free Trade Agreement (NAFTA), which was crafted by former President Bill Clinton and enacted in 1994, was a frequent Trump campaign promise.

 

The deal was intended to eliminate most trade tariffs between the three nations, increase investment and tighten protection and enforcement of intellectual property.

The reaction in the Mexican Peso and Canadian Dollar is clear...

This should hardly be surprise...

Canada's ambassador to the United States said it was clear the Trump team were concerned above all about trade deficits with Mexico and China.

"I don't think Canada is the focus at all," David MacNaughton told reporters in Calgary, Alberta, ahead of a two-day government retreat focused on how to handle the new Trump administration.

Additionally, as CNN's Jake Tapper tweeted, Trump is expected to abandon TPP...

 

All of which confirms the new White House's statement:

"This strategy starts by withdrawing from the Trans-Pacific Partnership and making certain that any new trade deals are in the interests of American workers,"

 

"President Trump is committed to renegotiating NAFTA. If our partners refuse a renegotiation that gives American workers a fair deal, then the president will give notice of the United States' intent to withdraw from NAFTA."

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
VinceFostersGhost's picture

 

 

Did you think we were kidding?

unrulian's picture

As a Canadian knowing that we have Trudeau vs. Trump in a trade negotiation...we're fucked

The "Shark" Kevin O'Leary can't become prime minister fast enough

https://olearyforcanada.ca/en/home/

Craxi's picture

Dont kid yourself...Canada is a very protectionist country....just look at the regs regarding their Dairy industry. The entire food industry is protected. 

CNONC's picture

Try traveling to Canada to work on a machine which you, youself, designed and built.  You will not be allowed in.  You have to lie and say you are performing a "warranty inspection." 

poeg's picture

Another BS moment. Sandvik, SMAG, Bosche... all working at PCS Potash in Saskatchewan Canada, the gear long since past anything resembling warranty, and the techs American, German and another German. Also have ThyssenKrupp guys German and American who didn't get your memo working surface at Mosaic K3.

robertocarlos's picture

I'm pretty sure Ferrari sends a tech here to fix the cars when the locals get stumped.

poeg's picture

roflmao and the US doesn't have QUOTA in place? Seriously? You're going to try and sell that?

unrulian's picture

that's Crap. We had a dairy trade deficit of -688 million in 2015 meaning we imported much more than we exported.

http://www.dairyinfo.gc.ca/index_e.php?s1=cdi-ilc&s2=aag-ail

armageddon addahere's picture

That is because the dairy industry is protected from competition. No, I am not kidding. There are quotas on dairy production and they have not been raised significantly since the 1960s. That is why the quota to sell the milk from one cow sells for over $100,000. They have a monopoly. There are plenty of  farmers who would like to get into the business,or expand their herds but they are not allowed to. Meanwhile we import dairy products to make up the shortfall. It doesn't make any sense, unless you are a dairy farmer with a quota, or a bureaucrat.

TradingTroll's picture

O'Leary?? Puhleeze! The guy ran a TV show on BNN with Amanda Lang (former Minister Otto Lang's daughter) and a typical show involved Amanda asking O'Leary about a company he owns. He would sing the praises of the earnings and dividends.Then Amanda would point out environmental destruction or poor treatment of workers by the company and O'Leary would just say he doesn't care as long as he gets his dividends.

Nasty, but this is a corporate cycle. Governments are weak, they have borrowed money to the sky, with no hope of paying back. Corporations, with all their warts, have to repay debt (most cases) and turn a profit to survive. Corporations are the smart money.

So, you have people like Trump and O'Leary who represent corporate interests that want to avoid the financial collapse on the horizon, or at least stake their ground when it happens.

Corporations will not be so benevolent and we only have ourselves to blame. Instead of holding the feet of government to the fire, we were having fun, pretending we trusted them and they had our back.

DeeZ_nutZ's picture

Canada is going to take it in the ass.  However, justin is beautiful and thus - who gives a shit!

unrulian's picture

I had to torch any comment that has Justin and Beautiful in it

MASTER OF UNIVERSE's picture

Our negotiators are not noobs, numbnuts!

 

America will get a fair deal and so will CANADA or we will take our ball and go home.

espirit's picture

I'll raise you, and 'call' go.

Do you want to play another game?

peddling-fiction's picture

Are MOU's negotiators flaky fairies?

Do they toss balls like a litte girl?

BabaLooey's picture

I'm long the USD/CAD and USD/MXN......

(c:

MFL5591's picture

Time for all Americans to turn off and tune out the destructive CNN.  When you see these scumbags in airports, stand up and demand they take this communist group off the TV.

BabaLooey's picture

OR....just use this

http://www.tvbgone.com/

Works like a charm.

Burrodog's picture

Trump's protectionism is not a surprise. Canada will survive and grow stronger. Make Canada Great Again.

NoWayJose's picture

Assuming Trump goes big into infrastructure, Canada will be supplying a lot of those raw materials. And you can bet that oil pipelines will be flowing. Canada should do fine. I do not see Canadian workers making 20% of US workers.

VinceFostersGhost's picture

 

 

Make Canada Great Again.

 

Don't have a problem with Canada.........go Canada!

c2nnib2l's picture

difficult almost as difficult as John Ford interview for TCM

 

https://www.youtube.com/watch?v=25b5TJFLHwE

SheepDog-One's picture

Good! I don't care what happens to their precious charts fuck NAFTA and TPP theyre crook deals that brought us nothing but Shitwaves.

Dark Daze's picture
Dark Daze (not verified) Jan 23, 2017 9:13 AM

Our dollar goes up and it goes down. Mostly, for our entire history, our dollar has been manipulated by Wall street (a.k.a. the cia).

We just signed a deal that gives us access to a new market with 400 million consumers. A new deal with Britain is also close at hand and then of course we have China, central and South America, and on and on. So, go ahead and trash nafta, i give you my blessing. Aside from the first 3 years (1994-1997) we have had ZERO gdp benefit from it while also losing hundreds of thousands of jobs.

There are couple things you should realize however. We will remove all 4 of our banks from the primary dealer system the fed has going, then we will sell the quarter trillion of your debt that we hold, then we will slap on a 30% export tax on the hydro electric we send you (80% of your consumption), then we will buy Russian Su-34 and Su-35 jets), and we may even put you on a visa system.

So go ahead and make our fucking day/week/month/year. It's only the morons, the hopelessly uninformed and the downright idiots who think it would be consequence free.

SilverRhino's picture

then we will buy Russian Su-34 and Su-35 jets), and we may even put you on a visa system.

At which point we invade with a Boy Scout Troop and take over.    Wall off Toronto, Vancouver and Montreal as free cities under siege [deport everyone that surrenders to elsewhere] and cut deals with the rest of Canada to join as US territories.   

Game, Set, Match.


Dark Daze's picture
Dark Daze (not verified) SilverRhino Jan 23, 2017 10:55 AM

You are obviously quite ignorant of history and also ignorant of the fact that germany, britain, australia, China, Russia, India and half the canadian population would be there to stop you. In 1812 when we were outnumbered 25:1 we fucking crushed you. Do you think it would be any different today?

I dont think so. You need to do some reading about vimy ridge, the somme, paschendale, the dutch scheldt, ortona, lundy's lane, chryslers farm etc.

When you do that you fucking moron you will know that no only did we save yor fucking asses in ww1 and ww 2, but in fact one canadian is, and has always been worth ten Americans.

And as for military hardware, we will fucking buy whatever we want to you cocksucker. Four wings of su-35's and six wings of su-34's would slice through you like a knife through hot butter.

Are you a fucking joo?

So just fuck off and die now.

dogismycopilot's picture

Trump going to kick Trudeau's ass.

I think Trump could kick his ass in a street fight too.

Trump is one of those old geezers with strength of will. 

MAGA. 

Dark Daze's picture
Dark Daze (not verified) dogismycopilot Jan 23, 2017 9:25 AM

Not really, we have 400 years of experience dealing with american assholes. Read about Lundy's Lane, and get back to us.

You worthless pos

TradingTroll's picture

Trudeau will be a one term PM.

armageddon addahere's picture

Trump is a little old for the hand to hand combat at 70. Trudeau is 40 and has a better record, he beat Conservative MP Patrick Brazeau in 3 rounds in his last bout.

https://www.youtube.com/watch?v=XuSpZ3_5pTc

The Real Tony's picture

Reiterating the fact Poloz will cut the BOC rate to zero so all the pakis in Brampton don't lose their homes. I hope the Canadian dollar doesn't fall below the 50 cent mark.

Dark Daze's picture
Dark Daze (not verified) The Real Tony Jan 23, 2017 10:53 AM

Poloz will not be cutting rates to zero. Dont you follow the bond market?

CrankyCurmudgeon's picture

Hey Hedgetards, Nafta was not actually Clinton, it was your Republican darling Bush the first. Electing Reagan sent the US on the road to hell, and Trump has sealed the deal.

Longarm's picture

Hey Canada and Mexico, just remember that the USA bombs countries that piss us off, because we can @ssholes and there's nothing a couple of piss ants can do about it. So take your worthless (and less) loonie bucks and your peso crapola and stick it where the sun don't shine.

Dark Daze's picture
Dark Daze (not verified) Longarm Jan 23, 2017 12:48 PM

You're a fucking dead man. Cocksucker.

The only things Americans were ever good at was murdering and thievery, and you are a perfect example of the kind of low life swamp water rat that needs to be annihilated.

Longarm's picture

I've always heard it takes a cocksucker to know one, so who cares what a cocksucker thinks anyway.

Dark Daze's picture
Dark Daze (not verified) Longarm Jan 23, 2017 2:17 PM

Thats the measure of the people you associate with. Scum of the fucking earth.

Longarm's picture

I love triggering snowflakes, now go to your safe place.

chickadee's picture

Competing with Mexican wages on a level playing field has been hard on the rest of North American labor. Who can live on $5.10/ day?