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Canadian government officials say there's an increasing likelihood that the US will give six months' notice to withdraw from the North American Free Trade Agreement, according to separate reports from Reuters and Bloomberg.

In keeping with his campaign promise, Mr Trump forced Canada and Mexico to sit down and renegotiate the 1994 trade pact, and said if a deal could not be reached he would withdraw the United States from Nafta.

According to data from the Bureau of Transportation, US freight flows within the North American Free Trade Agreement (NAFTA) region climbed to US$100.6bn in October.

A report earlier on Wednesday said that two government sources had expressed concern that Canadian officials were becoming convinced that Trump would leave the 24-year-old agreement.

The auto and freight sectors are considered to be the most "at risk" in the NAFTA renegotiation talks as movement of manufacturing facilities and lower trade volume could hurt financial results and decrease productivity.

"The government is increasingly sure about this.it is now planning for Trump to announce a withdrawal", one of the sources, who asked to remain anonymous because of the sensitivity of the situation, said.

"We have always said that this is a possibility", a Mexican government source with knowledge of the talks told Reuters, referring to the prospect of a USA withdrawal.

The Canadian dollar rose 4.2 cents to 0.79.74 US dollar.

Mexico's Economy Ministry declined to comment on the report, a ministry spokesman said. Trade officials from Mexico, Canada and the United States have put a March deadline on completing negotiations on NAFTA.

A spokesman for Canadian Foreign Minister Chrystia Freeland - in overall charge of U.S.


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