Mexico and US have substantially reached an agreement to remove metals tariffs - report
Canadian report from the Globe & Mail:
"Mexico is close to a deal with the United States to lift tariffs on steel on aluminum without imposing any quotas on exports, but the country has paused to give Canada an opportunity to work on its own deal with Washington, the chief Mexican negotiator told The Globe and Mail."
The crux of the deal includes provisions to halt and monitor trans-shipping, according to the report. That would be workable for Canada and Mexico, who have both opposed quotas.
The reason Canada is being included at this stage is to avoid a repeat of NAFTA talks when Mexico reached a deal with the US and Canada wasn't included. That set off a diplomatic storm.
USD/CAD is lower after this report and now down 29 pips on the day to 1.3433.