Trump Threatens To Freeze Canada Out of New NAFTA Arrangement
President Donald Trump informed Congress on Friday that he would require more time to reach an amended trade agreement with Canada.
U.S. Trade Representative Robert Lighthizer told Fox Business that while the president needs more time to negotiate with Canada, he fully expects to sign a new deal with Mexico within 90 days.
The president also gave warning to Congress not to interfere with the negotiations, saying that if it did, he would do away with the North American Free Trade Agreement altogether.
Trump made it clear that he is open to the idea of leaving Canada out of the trade deal. “There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out,” Trump said Saturday on Twitter.
“Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off,” Trump said.
There is no political necessity to keep Canada in the new NAFTA deal. If we don’t make a fair deal for the U.S. after decades of abuse, Canada will be out. Congress should not interfere w/ these negotiations or I will simply terminate NAFTA entirely & we will be far better off…
— Donald J. Trump (@realDonaldTrump) September 1, 2018
He also called NAFTA “one of the WORST Trade Deals ever made.” He said the deal caused the United States to lose “thousands of businesses and millions of jobs.”
“We were far better off before NAFTA,” Trump said. “Should never have been signed. Even the Vat Tax was not accounted for. We make new deal or go back to pre-NAFTA!”
….Remember, NAFTA was one of the WORST Trade Deals ever made. The U.S. lost thousands of businesses and millions of jobs. We were far better off before NAFTA – should never have been signed. Even the Vat Tax was not accounted for. We make new deal or go back to pre-NAFTA!
— Donald J. Trump (@realDonaldTrump) September 1, 2018
The decision by Trump to focus on the economic health of the United States over trade relations with other countries is the fulfillment of his “America first” campaign promise.
The president also threatened to enact more tariffs on Canada’s automotive exports to the United States if negotiations break down.
Canada, however, is the second-largest trading partner the United States has, according to Fox Business.
Trump’s comments about the possibility of no trade deal with Canada came the day after talks between the two countries about possible new terms of NAFTA ended without an agreement.
Canada also seems content with the possibility of a deal not being struck with their neighbors to the south.
“We are looking for a good deal, not just any deal,” Canadian Foreign Affairs Minister Chrystia Freeland told reporters earlier this week, Fox Business reported.
Freeland said Canada “will only agree to a deal that is a good deal for Canada. We are not there yet.”
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