Mexico has said it would back out if tariffs were introduced and Canada has also questioned the higher USA content rules on vehicles.
Among the most divisive are plans to establish rules of origin for NAFTA goods that would set minimum levels of USA content for autos, a sunset clause that would terminate the trade deal if it is not renegotiated every five years, and ending the so-called Chapter 19 dispute mechanism.
The White House was quick to deny it.
"The United States has been very clear since before the talks started that (a pull out) was a possibility", Freeland told reporters. Now that it has become known that the NAFTA negotiations are not on a path towards success at all the BoC might refrain from further rate hikes so as to avoid putting additional pressure on the Canadian companies with higher interest rates and as a result a possibly stronger CAD.
Fellow Iowa Republican Sen.
For the peso, jitters over the North American Free Trade Agreement adds to uncertainty over Mexico's July presidential election.
The U.S. dollar fell against a basket of major currencies but made a partial recovery after the Labor Department said its consumer price index, excluding the volatile food and energy components, rose 0.3 percent last month, the biggest advance since January 2017.
A transcript of the interview shows Trump saying of the negotiations: "We're moving along nicely", "There's no rush", "I'm leaving it a little flexible", "We have a chance of making a reasonable deal", "We've made a lot of headway".
NAFTA advocates who argued the stock market would respond negatively if Trump were to leave the pact were vindicated Wednesday afternoon when markets quickly took a hit after the Reuters story came out. "They have an election coming up fairly shortly".
"There's real concern in the manufacturing committee and the agricultural committee that [leaving NAFTA] would impact the economy in a very negative way", Sen.
Scrapping NAFTA would not only damage GOP campaign plans, but it would also be likely to set off a fierce legal battle over whether or not Trump has the unilateral authority to make the decision without congressional approval. Initiating the withdrawal process would not be binding for the United States and such a move would need Congress approval. At stake is a relationship between the three nations whose annual trade in goods totals about $1 trillion - and even the business models of companies such as Ford Motor Co. and General Motors Co. that have adapted their supply chains to take advantage of the trade zone. "You can't ever put it back together".
Canada tamps down worries about US NAFTA withdrawal
The Toronto Stock Exchange's benchmark Standard&Poor's/TSX Composite Index fell 71.29 points, or 0.44 percent, to 16,247.95. Any of the three countries can pull out of NAFTA if they give six months' notice, but the agreement remains in effect.