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Canada's Ambassador to the US has warned that continued uncertainty over the future of NAFTA will have a negative impact on investment.
In an interview with Bloomberg, David MacNaughton said: "People are sitting on their wallets and they're not investing as much as they would if there was more certainty."
He explained that investors are concerned over the future of NAFTA, and over the likely impact of 'Buy-American' provisions and the so-called border adjustment tax proposed by senior US Republicans.
"The reality is that uncertainty will hurt Canada and the United States, so we need to work together to remove that," MacNaughton told the publication.
MacNaughton added that he believes there to be a "genuine desire" on the part of the new US administration "to find a way to continue NAFTA and to remove some of the irritants with Mexico in particular."
"Whether or not they can get there I don't know," he admitted.
MacNaughton said that he anticipates that the US will issue a notice of its intention to renegotiate NAFTA "sooner rather than the later." He does not however expect the US to issue a six-month notice of withdrawal from NAFTA.
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