Exchange-traded funds that track both Canada’s and Mexico’s stock markets fell on Wednesday, following a report that suggested U.S. President Donald Trump may announce a withdrawal from the North American Free Trade Agreement. The iShares MSCI Mexico ETF sank 2.5% while the iShares MSCI Canada ETF lost 1.1%. The S&P 500 fell 0.2%. According to Reuters, which cited two Canadian government officials, Canada is increasingly convinced that President Donald Trump will announce that the U.S. will exit Nafta. The trade pact is currently being renegotiated with the latest round of talks scheduled for later this month in Montreal. A dissolution of Nafta is seen as detrimental to both Mexico and Canada, which benefit from free trade with the world’s largest economy.
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