More NAFTA uncertainty
The US and Canada are basically out of time to iron out their differences in a trade agreement before the Sept 30 deadline to have a completed full text.
What does that mean?
Well it could mean a US-Canada trade spat, auto tariffs and other problems. Or they could simply continue to negotiate.
However that could add a new kink. The main reason for the deadline was that incoming Mexican PM Lopez Obrador wanted his predecessor to sign the deal before he leaves office on Dec 1.
However Lighthizer said today that if it's not done in time, then Lopez Obrador might want to renegotiate: "If we push it beyond that date then we have a new negotiation with Lopez Obrador and we don't know where that would go at all," he said.
I'm doubtful on that because Lopez Obrador has clearly given the current negotiators some instructions but it's something to think about. However, if anything that might add more pressure on the US, which has squeezed a good deal out of Mexico.
