OTTAWA (Reuters) — More a quarter of Canadian firms could move part of their operations to the United States amid uncertainty over the future of the NAFTA trade pact, the nation's export credit agency said on Friday.

The semi-annual forecast by Export Development Canada underlines the challenges posed by the more isolationist approach to trade of U.S. President Donald Trump's administration.

Canada sends 75 percent of all goods exports to the United States and could be badly hit if Washington walks away from the North American Free Trade Agreement. One way to cushion the potential blow is to set up shop in the United States.

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