“I agree with our USA senators that NAFTA should be updated and not terminated, and I think even threatening to terminate is not in the best interest of the Texas economy”.
Trump said at Tuesday’s campaign-style rally that he believes Mexico and Canada are coming out ahead on the trade agreement.
At 4:00 p.m. ET (2001 GMT), the Canadian dollar CAD=D4 traded at C$1.2547 to the greenback, or 79.70 USA cents, up 0.1 percent.
Wall Street analysts estimate Congress has just 12 working days when it returns from its summer recess on September 5 to raise the debt ceiling before the U.S. Treasury exhausts the last of its options to remain current on all of the federal government’s obligations.
Without the support of Congress, a president might withdraw the U.S. from the worldwide agreement, but he could not singlehandedly wave away the law on the United States books that implemented NAFTA. Since NAFTA was negotiated, biotechnology has expanded significantly. Trump backed down from an earlier threat to scrap the pact after seeing a map of states with Nafta-dependent economies that helped vote him in office.
Canada’s minister of foreign affairs, Chrystia Freeland, only recently issued a series of general ideals around what Canada would be looking for in the negotiations.
“It’s hard to imagine how they can do something very substantive and do it very quickly”.
Immediately following Trump’s speech, Mexican Foreign Minister Luis Videgaray dismissed the threat to terminate NAFTA, saying it was simply part of the negotiating process.
“You can have a tax cut, but if you have a trade war, that is going to impact the economic growth”, Mr Cardillo said. However, the Automotive Industry is also perhaps the primary example of an industry taking advantage of NAFTA to create a manufacturing industry that is truly interconnected throughout North America.
Consider also that reduced costs for parts and the reduced distances of the supply chain that NAFTA allowed for have made North American made vehicles more competitive around the world. But former Department of Agriculture trade advisor in the Bill Clinton Administration, Paul Drazek has this… “So that trade stops being attacked, but rather embraced”, said Nasim. Trump said Tuesday night.
“Navistar recently began to export used heavy-duty trucks to Mexico and we intend to increase quantities in the years ahead”, Jim Spangler, vice president of corporate affairs for Navistar, said in a letter to the USA trade representative. In fact, 40 percent of USA imports from Mexico originate with US companies and contain American designed and made parts. He made the decision in April after talking to the leaders of Canada and Mexico.
During opening remarks at the start of the renegotiation talks, U.S. Trade Representative Robert Lighthizer said NAFTA “has fundamentally failed many Americans and needs major improvements”, adding that Trump isn’t interested in “a mere tweaking” of a few provisions and chapters.
Marissa Gamache, a special writer for TT, contributed to this article.