Trump agrees to renegotiate NAFTA with Mexico, Canada

Geneva Matthews
May 12, 2017

It was unclear whether the order would be enacted by President Donald Trump, who has vowed to pull out from NAFTA - a U.S., Mexico and Canada trade pact - if he can not win better terms for America.

U.S. President Donald Trump told the leaders of Canada and Mexico on Wednesday that he will not terminate the NAFTA treaty at this stage, but will move quickly to begin renegotiating it with them, a White House statement said.

The White House says the president "agreed not to terminate NAFTA at this time".

"So, they asked me to renegotiate (and) I will".

Ironically, the very manufacturing workers that helped propel Trump to his election victory would be heavily impacted by a NAFTA withdrawal.

Trump has long said NAFTA is not a fair deal for USA workers.

"I was going to do it".

"We're going to have to get to the negotiating table with Canada very, very quickly", he said then. "[The president] believes certainly in a country that's abundantly producing as America is, we should have a surplus and he's determined to get that", said Perdue.

Trump campaigned for president past year on a pledge to pull out of Nafta if he could not renegotiate better terms. They said, 'Is there any way we can do something without you - without termination?' I said, 'What do you want to do?' He said, 'Well, we'd like to negotiate.' I said we'll think about it.

"Rather than terminating NAFTA, which would be a pretty big shock to the system, we will renegotiate", Trump told reporters in the Oval Office on Thursday. This week the Trump administration slapped the Canadian lumber industry with new import duties that range from three to 24 per cent and apply to U.S-bound shipments from Canadian forestry companies.

Trump said it was his privilege to update NAFTA through renegotiation.

President Trump still calls the North American Free Trade Agreement "a awful deal" for the United States.

"You can't sit back and let Trump control the agenda", Dias said.

"It is a clear indication that they (in the White House) are wanting changes but we will have to see what emerges", said Paul Ferley, assistant chief economist at Royal Bank of Canada. Which is to say that he wanted to rush into something he knew nothing about, then got talked out of it by people offering him basic information that had somehow never gotten through to him in his year and a half of campaigning, transition, or first almost 100 days of presidenting. But it may have been even harder on the USA, and Trump would have faced intense opposition from business groups and high-profile Republicans in Congress.

About 14 million American jobs depend on trade with Mexico and Canada, according to the US Chamber of Commerce. He decided that it would be better to terminate the trade deal after hearing about Wisconsin farmers' struggles with new Canadian dairy rules that were shutting out their milk protein exports.

The Mexican and Canadian currencies maintained their rebound early on Thursday after Trump's latest comments.

Another recent example of this phenomenon comes in regard Chinese President Xi Jinping, with whom Trump spent two days at Mar-a-Lago earlier this month.

Other reports by VideoGamingPros

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