The implications of the dismantling of a 23-year accord which governs more than $1 trillion (€847 billion) worth in trade between three of the world’s largest economies could send shockwaves through the global trading landscape.

This prospect took one step closer, when the fifth round of the North American Free Trade Agreement (NAFTA) negations to update the accord failed to end with any significant agreements.

Created in 1994, NAFTA formed a trading block between Canada, the US and Mexico, through reducing tariffs and other barriers to trade.

Dubbed NAFTA 2.0, the negotiations to update the accord were instigated when the Trump administration threatened to walk away from the agreement if more favourable terms for the US could not be developed.

President Donald Trump campaigned on rewriting what he called the “worst trade deal in the history of the world” and it is now seen as a key election promise.

However, NAFTA has been a key driver of US agricultural exports and many fear of the consequences if they were to walk away from the deal.

According to the USDA Foreign Agricultural Service, since signing the agreement the total agricultural commodity trade with NAFTA members has increased more than three-fold from $18 billion in 1994 to $61 billion in 2010.

For example, in 2016 Canada and Mexico imported approximately 560 million bushels (14.2 million tonnes) of corn (maize), much of which comes directly from the US.

This volume is the equivalent to 28% of total US corn exports and represents an important home in an already saturated grain market.

NAFTA talks have thus far made slow progress, with parties unable to come to a consensus on even minor issues.

The sixth round of talks takes place in January, but the prospect of reaching a deal by the March deadline seems increasingly unrealistic.

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