Kansas ag producers lose with NAFTA pull-out

Owen Stevens
May 7, 2017

Trump has repeatedly vowed to pull out from the 23-year-old trade pact if he is unable to renegotiate it with better terms for America.

"It's been very, very bad for our companies and for our workers, and we're going to make some very big changes, or we are going to get rid of NAFTA once and for all", Trump said.

The draft had been created by Peter Navarro, the director both of Trade and Industrial Policy and of the White House National Trade Council, and by key Trump strategist Steve Bannon, Politico reported. Mexico's foreign minister said a good outcome for all three countries was possible under a new accord. Yesterday, Trump confirmed that was the case, but added a twist in a pair of early morning tweets.

The mere rumour of it happening this week, floated on Wednesday by the White House, shaved nearly two per cent off the Mexican peso and a third of a cent off the loonie. With hundreds of billions of dollars at stake, it's little wonder those countries' leaders pressed Trump not to abandon the trade agreement.

Sasse acknowledged that there are ways in which NAFTA could be improved, but he cautioned against canceling the deal.

The threat to withdraw is consistent with his campaign rhetoric. Would the United States pull out of the North American Free Trade Agreement? For instance USA corn growers past year, exported $2.5 billion dollars of corn to Mexico, the top foreign market for United States corn.

On Feb. 13, Trump stood beside Trudeau in the White House's East Room and said he meant to make only small changes to NAFTA that focus on U.S.

Mexico's Economy Minister, Ildefonso Guajardo, told business leaders at a recent meeting in Detroit that NAFTA should be modernized to better incorporate items like e-commerce, not because the deal is unfair to the U.S.

USA crude prices were last down 2.1 per cent at $48.58 a barrel, while Brent lost 2.2 per cent to $50.69 after news that two key Libyan oil fields had restarted, pumping crude into an already bloated market.

Trump made pulling out of the 12-nation Trans-Pacific Partnership, negotiated by his Democratic predecessor Barack Obama, one of his first major acts after becoming president in January.

Trump has promised to build a wall along the U.S. -Mexico border and threatened a tax on Mexican goods when they enter the United States. John McCain, R-Arizona, had expressed opposition to a withdrawal from NAFTA. "I will", Trump told reporters in the Oval Office.

Canada said it was ready to come to talks on renewing NAFTA at any time. While Trump has pivoted on other issues, trade is the issue where he has maintained a consistent position.

"We're going to have to get to the negotiating table with Canada very, very quickly", he said then.

Trudeau said the president seriously raised the possibility. They laugh at us. On Tuesday, Trump said he did not fear a trade war with Canada, a day after his administration moved to impose tariffs on Canadian lumber.

Together, they import significantly more from the US than all 28 countries of the European Union combined ($503 billion).

Other reports by VgToday

Discuss This Article