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14 January 2018, 12:40 | Darnell Patrick
"They can pay for it indirectly through Nafta", the newspaper quoted Trump as saying. Under the agreement, the U.S., Mexico and Canada can withdraw after giving six-months' notice.
President Donald Trumpsaid in a new interview NAFTA could be used to pay for a new wall at the United States' border with Mexico.
Trade relations between the two countries have taken a dramatic turn this week, with Canada escalating its trade spat with the United States by filing a complaint over American duties against Canada and other countries.
U.S. Trade Representative Robert Lighthizer said the WTO filing was a "broad and ill-advised attack". "The worst case scenario with NAFTA falling apart is that Canada is much better off without it", Jerry Dias said.
Mexico's Economy Minister Ildefonso Guajardo, who heads his country's negotiating team, told reporters earlier this week that 10 of the 30 chapters that required updating are ready to be closed at the Montreal gathering. They have so far yielded little firm indication of whether a deal can be reached to update the pact, the officials said.
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NAFTA is the biggest free trade agreement in the world with a common market of some 460 million people and has knit together the economies of Canada, Mexico and the USA since it entered into force in 1994.
The Canadian dollar fell to its weakest level this year at C$1.2561 to the greenback, or 79.61 USA cents. The peso fell 0.8% to 19.3963 per dollar.
"I can tell you I think the American market would go up if I terminated Nafta and renegotiated a new deal", Trump said.
One of the sources, Raul Urteaga, the head of global trade for the ministry of agriculture, said: "If Trump announces a U.S. withdrawal from NAFTA, well at that moment the negotiations stop".
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