Global Markets: U.S. softens NAFTA demand on car content

By Commodity News Service Canada
WINNIPEG, April 5, 2018 (CNS) – The following is a glance
at the news moving markets in Canada and globally.
The Trump administration has softened a key North
American Free Trade Agreement (NAFTA) demand for more North
American content in car manufacturing. The United States
proposal would distinguish between NAFTA car parts by
grouping them into five categories, some of which would
have a lower requirement for North American content or none
at all. The U.S. had originally been pushing for 85 per

cent of a vehicle’s content to be sourced from NAFTA
countries. The eighth official round of NAFTA
renegotiations have been replaced by high-level meetings
with the three countries’ trade representatives in D.C.
this week.
Canada’s trade deficit unexpectedly rose to C$2.69
billion in February from C$1.94 billion in January as
imports grew much faster than exports, according to
Statistics Canada data released Thursday. Imports rose by
1.9 per cent due to a surge in shipments of energy products
and imports of motor vehicles and parts. Exports grew by
0.4 per cent as vehicle shipments rebounded. Exports of
farm, fishing and intermediate food products dropped by
17.2 per cent, the largest fall on record, due to grain
transport problems.
Monsanto Co., which is being acquired by Bayer AG,
missed analysts’ quarterly profit estimate on Thursday.
Sales in the company’s corn seeds and traits business
dropped by 6.2 per cent, while soybean business sales rose
by six per cent. Net profit rose to US$1.46 billion from
US$1.37 billion. On an adjusted basis, the company earned
US$3.22 per share, missing the average analyst estimate by
eight cents.

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