Trump withdraws threat to withdraw from NAFTA

Yesterday it was being reported that a White House official had indicated that Donald Trump was likely to sign an order beginning the process for the US to withdraw from the NAFTA trade agreement.

That appears to have been a bluff, or Trump has reconsidered.

Trump has more or less confirmed that, but now says he has held off doing that pending negotiations with Canada and Mexico, but Trump has left a threat to withdraw hovering over talks.

Bloomberg: Trump Says Nafta Pullout Still Possible If Renegotiation Fails

President Donald Trump said Thursday he’s still ready to pull out of the North American Free Trade Agreement if he can’t renegotiate better terms for the U.S. but that he decided to hold off on a decision after appeals from the leaders of Canada and Mexico.

“I was going to terminate NAFTA as of two or three days from now,” Trump told reporters in the Oval Office. But he said he reconsidered after Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau both phoned him Wednesday asking him to renegotiate the deal instead. Those talks will start as soon as today, he said.

Trump also said a quick U.S. withdrawal “would be a pretty big shock to the system.”

But Trump… added that “If I’m unable to make a fair deal for the United States–meaning a fair deal for our workers and our companies, I will terminate NAFTA.”

So the threat is still there. That seems to be how Trump likes to ‘negotiate’. And how he deals with ‘promises’.

Back in December:  Trump’s stance on NAFTA was a ‘campaign promise designed to be broken’

President-elect Donald Trump’s vow to renegotiate the North American Free Trade Agreement, or NAFTA, would have a detrimental impact on the United States’ automobile industry and its jobs, VLF Automotive CEO Bob Lutz told CNBC on Friday.

Once Trump looks at the impact of the goals he voiced on the campaign trail, he will find a way out of pushing the auto industry into disarray, Lutz said on CNBC’s “Power Lunch.”

“I have every confidence that this is a campaign promise that is designed to be broken,” Lutz said.

“Trump is a reasonable, good, analytical businessman. Once he takes an earnest look at pluses and minuses of dealing with NAFTA and sees what the impact on American jobs [is],” he’ll find a way to roll back any promise of dismantling the agreement, Lutz contended.

The problem with Trump’s argument that producing car parts abroad constitutes unfair trade practices is that there are international systems in place that are mutually beneficial, said Lutz, who was formerly the vice chairman of General Motors.

So those who voted for Trump based on his promises may have to get used to his wheeling and dealing and flip flopping.

The North American Free Trade Agreement came into force on 1994.

Most economic analyses indicate that NAFTA has been a small net positive for the United States, large net positive for Mexico and had an insignificant impact on Canada.

Chad P. Bown (senior fellow at the Peterson Institute for International Economics): “a renegotiated NAFTA that would reestablish trade barriers is unlikely to help workers who lost their jobs — regardless of the cause — take advantage of new employment opportunities.”

Harvard economist Marc Melitz: “recent research estimates that the repeal of NAFTA would not increase car production in the United States.” Melitz notes that this would cost manufacturing jobs.

https://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement

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7 Comments

  1. And so it continues … election promises unfulfilled … the ‘false flag’ Presidency …

    Reply
    • Oh no, you mean he’s not keeping his promises! First politician to do that then.

      Would you rather the USA out of it PartisanZ?

      Reply
  2. Zedd

     /  28th April 2017

    Mr T said he was promising to ‘make America great again’ BUT he just backing away from the policies he stated would do it !

    The only ones gaining here are the; T family & all their billionaire cronies 😦

    “Get rid of him !”

    Reply
    • Kitty Catkin

       /  28th April 2017

      Campaign slogans can’t really be anything other than rhetoric-they have to be short, memorable and pithy. The Trump one was not a very good one-too long, too clumsy, too folksy.

      Reply
    • Kitty Catkin

       /  28th April 2017

      I remember a few lines from Round the Horne when the wonderful Kenneth Williams was playing a decidedly camp Robin Hood and announced to Kenneth Horne that he ‘robbed the poor to help the rich.’

      ‘Shouldn’t that be ‘rob the rich to help the poor ?’

      ‘I know which side mybread’s buttered on, ducky.’

      Reply
  3. Kitty Catkin

     /  28th April 2017

    my bread…..

    Reply
  1. Trump withdraws threat to withdraw from NAFTA – NZ Conservative Coalition

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