President Trump, who often prides himself on his negotiating capabilities, has reached a North American Free Trade Agreement (NAFTA) deal with Mexico. He used the opportunity to state that if Canada does not get on board with the deal soon, he intends to leave the country out.
Trump stated on Monday that he wanted to drop the NAFTA name, renaming it the “United States Mexico Trade Agreement,” further antagonizing the U.S.’ northern neighbor. He carelessly delivered superlatives as usual, calling NAFTA the w0rst trade deal in history. The change in name would only serve to highlight Canada’s exclusion from the deal.
The “United States Mexico Trade Agreement” would differ from NAFTA only in that it would slightly upgrade policy surrounding digital economy, automobiles, and labor unions.
Trump’s approach could have severe consequences, as putting pressure on Canada could end up alienating the country. Jay Timmons, the president and chief executive of the National Association of Manufacturers, has stated that making a tri-lateral deal which includes Canada would be the best course of action. He said:
Because of the massive amount of movement of goods between the three countries and the integration of operations which make manufacturing in our country more competitive, it is imperative that a trilateral agreement be inked.”
Even Mexican lawmakers and officials have stated that, although they have already signed the deal, they would like Canada to be included by the end of the week.
Many consider Trump’s decision to be a good example of how he uses legislation surrounding trade mainly to affect international relations, instead of finding what is best for the U.S.
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