Tags: Donald Trump | Mexico | Trump Administration | donald trump | threat | nafta | canada

Trump's Threat to Leave NAFTA Worries Canada, Mexico

Image: Trump's Threat to Leave NAFTA Worries Canada, Mexico
(Olivier Douliery/Getty Images)

By    |   Tuesday, 16 January 2018 01:42 PM

President Donald Trump's threat to withdraw the United States from the North American Free Trade Agreement in a recent interview has harmed the Canadian and Mexican currencies, as well as sending the Mexican stock market lower, according to Global Trade.

Ottawa views the comments as increasing the chances that the U.S. will leave the deal, especially since Treasury Secretary Steven Mnuchin proclaimed that the president will do so if it can't be revised, according to his specifications.

Trump's threat comes after he apparently felt dissatisfied from the last few sessions of NAFTA negotiations and with the next round scheduled to begin on Jan. 23 in Montreal.

Mexican officials have warned that they will cut off negotiations if Trump decides to trigger the six-month process to withdraw from the trade pact, Fox News reported.

Canada also appears ready to fight back, as it filed a 32-page complaint to the World Trade Organization last month accusing the U.S. of nearly 200 examples of what it deemed unfair trade practices.

Canadian Foreign Minister Chrystia Freeland explained to Fox News that ''While we hope for the best, we look for win-win outcomes, we also need to be very clear that we will defend our national interest."

At the same time, Canada's Ambassador to the United States David MacNaughton said Ottawa "is actively engaged in modernizing NAFTA so that together we can create more jobs, grow our economies and secure better benefits for workers across North America."

There are estimates that the U.S. has enjoyed a $1 billion trade surplus in agricultural goods with Canada alone due to the agreements, and this has caused Congressional Republicans from American border states whose economies depend on trade, as well as some U.S. automakers who build their products in all three countries, to urge the Trump administration to modernize NAFTA, not end it.

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President Donald Trump's threat to withdraw the United States from the North American Free Trade Agreement in a recent interview has harmed the Canadian and Mexican currencies, as well as sending the Mexican stock market lower, according to Global Trade.
donald trump, threat, nafta, canada, mexico
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2018-42-16
Tuesday, 16 January 2018 01:42 PM
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