Canada tamps down worries about US NAFTA withdrawal

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Canada's main stock index continued down Wednesday when Canada is increasingly convinced the United States will withdraw from the North American Free Trade Agreement.

One of the sources, who works with the Canadian government, even said they were "sure" Trump will withdrawal from the pact and that they are planning for the announcement.

The Toronto Stock Exchange's benchmark Standard&Poor's/TSX Composite Index fell 71.29 points, or 0.44 percent, to 16,247.95. The Mexican peso also lost value.

The Loonie closed at an average trading price of 80.03 cents United States, down 0.27 of a USA cent.

Canada's two-year government bonds also took a hit, dropping seven basis points to 1.73 percent.

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Last fall, U.S. Trade Representative Robert LighthizerRobert (Bob) Emmet LighthizerMORE tried to calm concerns about a withdrawal, saying the Trump administration had every intention of completing the negotiation of an updated NAFTA with Mexico and Canada.

It was also announced Wednesday that Canada had filed a complaint with the World Trade Organization (WTO), claiming the USA had committed almost 200 violations of global trade rules.

Any of the three countries can pull out of NAFTA if they give six months' notice, but the agreement remains in effect.

The sources said they expected Trump would make his move at about the same time that negotiators from the United States, Canada and Mexico meet in late January for the sixth and penultimate round of talks to modernize the treaty.

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