NAFTA Renegotiation: See you in the New Year – TDS

Following the fifth round of NAFTA renegotiations, analysts at TDS continue to expect talks to end in a modernized NAFTA within the first half of 2018.

Key Quotes

“We also now see a marginally greater likelihood for an agreement without the use of Article 2205, though adverse risks remain.”

“Key to watch until the next official round in January is for additional counter-proposals from Mexico and Canada, specifically on rules of origin. A further softening in US demands, as has been implied with the sunset clause, is unlikely until other proposals have been received. With talks officially scheduled for January and US tax reform ongoing, a derailment is unlikely through yearend.”