Trump says he will renegotiate NAFTA or terminate it

Posted April 28, 2017

The conversations with the leaders came after it was reported that Peter Navarro, the head of the National Trade Council, and White House chief strategist Steve Bannon had drafted a letter that would have alerted Canada and Mexico of the US's intent to withdraw from the trade agreement.

"If I'm unable to make a fair deal, I will terminate it", he said.

Some of Trump's advisers wanted a dramatic move before Trump's 100th day in office on Saturday to fulfill a key campaign promise, while others said he could let the milestone pass and revisit the issue later through more formal procedures, according to two White House officials who spoke on condition of anonymity to discuss internal deliberations. And I said I will hold on the termination.

Millions of American jobs could be caught in the crossfire of President Trump's plans for NAFTA, the trade deal between the US, Mexico and Canada.

And Monday, the Commerce Department said it would begin charging a tariff on the import of softwood lumber from Canada into the United States, alleging Canada was improperly subsidizing its domestic timber firms. Mr. Trump had described NAFTA as the worst trade deal, and had blamed former President Bill Clinton for it. He said the 1990s trade agreement has "been very good" for both Canada and Mexico but "horrible" for the United States.

But numerous analysts watching events this week, as well as people within the Canadian government, believe there's a simpler explanation for what's been going on: Trump wants to flex some muscle entering the negotiations and the threat to pull out is his strongest lever.

President Donald Trump is considering signing a draft executive order to withdraw the USA from the North American Free Trade Agreement with Mexico and Canada.

Some were gunning for Trump to sign a draft order this week, while others were weighing the complications surrounding withdrawing from or renegotiating the deal without congress fully onboard.

A Canadian source familiar with the matter said Trudeau had added in his comments to Trump that pulling out of NAFTA would be counter-productive.

"If you check my campaign, any of my speeches, I said I'll either renegotiate or I'll terminate, so they asked me to renegotiate and I will and I think we'll be successful in the negotiating which, frankly, would be good", he said, according to CNN. "The document would have given the leaders of Canada and Mexico six months' notice of the administration's intention to exit from the agreement".

Trump opposes large, multi-national trade deals and in January he pulled the United States out of the Trans-Pacific Partnership trade deal, which would have been the largest-ever trade pact as measured by the gross domestic product of the 12 intended member countries in the Americas and Asia. And it is unclear what would happen next. Trump has also been railing against changes in Canadian milk product pricing that he says are hurting the American dairy industry.

Sen. John McCain of Arizona had a similar warning for Trump.

"Withdrawing from #NAFTA would be a disaster for #Arizona jobs & economy", he tweeted.