We have reach a point of renegotiation with NAFTA, or just straight termination if a solution cannot be agreed upon. President Trump was ready to terminate in the first place, but he decided to at least try to renegotiate the North American Free Trade Agreement.
Trump did an interview with CBS’s “Face the Nation.” It was during that interview that he originally insisted to terminate the agreement, before his change of heart when both Canada and Mexico reached out to him. Trump said, “I got a very nice call from Justin Trudeau, the prime minister of Canada,” he continued, “I was all set to do it. In fact, I was going to do it today. I was going to do it as we’re sitting here.” Trump also had conversations with Mexican President Enrique Pena Nieto, about the agreement as well.
That’s what brings us to Trump’s decision on Sunday, when he said, “If I’m not able to renegotiate NAFTA, I will terminate NAFTA.”
Trump signed an executive order Saturday directing the Commerce Department and the U.S. trade representative to conduct a study of U.S. trade agreements. The goal is to determine whether America is being treated fairly by its trading partners and the 164-nation World Trade Organization.
Last week, Trump raised eyebrows after he lashed out at Canada, suggesting the country was unfairly disadvantaging U.S. dairy and lumber products. Yet in practice, some economists point out, Trump has been less stridently anti-trade as his campaign rhetoric suggested he would be.
“In general, the Trump administration has, up to now at least, taken a much less protectionist line than we feared after the very dark and foreboding inaugural speech, which talked of putting America first and that protection would lead to prosperity,” Capital Economics said in a report.
“However, there is no guarantee that we won’t see a renewed protectionist lurch,” particularly as warring factions close to the president jockey for advantage, the firm added.
What do you think? Will they reach an agreement or will NAFTA be nixed in the butt? Only time will tell.