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There’s Risk of a ‘Major NAFTA Accident,’ Warns JPMorgan

Posted April 03, 2019

Under Economic Issues, International Trade Issues


JPMorgan Chase & Co. has issued a warning about the future of the new NAFTA agreement if U.S. President Donald Trump attempts to rush ratification process amid political fissures in Washington.

“There are indications that the [Trump] administration seeks to complete the deal potentially in August – but in our view, this compressed timeline could very well put [U.S. President] Trump on a collision course with House Speaker Nancy Pelosi sooner rather than later, with risks of a major NAFTA accident,” analysts Daniel Hui, Paul Meggyesi and Patrick Locke wrote in a recent note to clients.

“Accelerating the approval process will likely meet resistance from House Democrats, led by Speaker Pelosi,” they added, warning that this poses a “significant risk” to the ratification of the deal, which negotiators from Mexico, Canada and the U.S. reached late last year. Click here to read more.