Is Trump Seeking Rework On NAFTA With Mexico, Excluding Canada

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North American Free Trade Agreement (NAFTA) would be reworked at the terms of only US President Donald Trump and this could have been one of the primary reasons negotiations with Canadian leaders on Friday didn’t conclude satisfactorily. As an aftermath the prices for dairy products hiked immediately amid private comments from Trump suggesting no further offer to Canada on any concessions.

It is believed a new trade agreement could be reached with other neighbors of United States, and probably with Mexico, excluding Canada from the tri-lateral agreement.

It is not yet clear how the Mexican government would react to the bid but Mexican Economy Secretary Ildefonso Guajardo said, “Mexico will participate in the negotiation of trilateral issues, while continuing to promote an agreement to which Canada is a party.”

NAFTA was signed between US, Canada and Mexico in January 1994 creating a trilateral trade bloc in North America, suspending Canada-United States Free Trade Agreement between the two nations. Many economists argue the new deal harmed US manufacturing industry due to trade competition.

Presently reworking on it is one of the primary economic and foreign policy goals of Trump government. He said the 1994 tri-lateral deal caused companies to shut down across Midwest and jobs were moved to Mexico.

Considering the reworking priority Washington struck a deal with Mexican leaders earlier this week on a small trade and Trump said it could replace NAFTA, but several GOP lawmakers declined to support urging for the involvement of Canada in it.

In coming days Trump may ratchet up economic pressure on Canada to make way for Canadian Prime Minister Justin Trudeau to speak on the condition and discuss sensitive deliberations too, though in anonymity.

Meanwhile, tariffs have already been imposed on Canadian aluminum and steel to pave way to trade concessions. Similar tariffs are also on card on automobiles and auto parts soon.

On several occasions Trump tried to pressure Trudeau and has called him as “meek” and “mild” too.

The Canadian PM responded, “We will not be pushed around.”

The three countries would sit for negotiations again soon and some of the GOP lawmakers hope an agreement could be reached despite differences.

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