Difficult to reach a finalized NAFTA agreement – Goldman Sachs

Following are the excerpts on the North American Free Trade Agreement (NAFTA) from Goldman Sachs’ latest clients note on the US-China trade war.

“We think a deal on the auto sector is fairly likely, but we believe it will be difficult to reach a finalized agreement covering all aspects of NAFTA renegotiation. 

NAFTA negotiations appear to be headed in a positive direction.

we believe it is fairly likely (60% chance) that an agreement on auto-sector rules of origin will be reached in the near-term.

However, we are somewhat more skeptical that a full renegotiation will be completed by the late August deadline negotiators have laid out (35% chance).”