How Trump Would Rework NAFTA – And What Mexico, Canada Want in Return

The North America Free Trade Agreement, in place since 1994, could benefit from updating. The agreement lifted most tariffs among Canada, Mexico and the United States and has had a net impact on growth and jobs for all three countries, according to multiple analysts. The Trump administration has announced plans to reopen NAFTA negotiations to create more US jobs. “Canada’s strategy, at this stage, seems to be to get out of the way,” reports Bloomberg News. “Canadian officials are holding out hope they’re not Trump’s target, and will do everything they can to make sure they don’t get sideswiped if the president goes after Mexico.” Mexico expects continued flow of remittances, orderly arrangements for the return of any immigrants and an agreement free of tariffs. NAFTA has no provision for renegotiation, said one expert, but supplements on environment and labor conditions were eventualy negotiated and added. The Trump administration has offered few specifics, and the countries can withdraw six months after giving formal notice. Trump also signed an order withdrawing from the Trans-Pacific Partnership, an agreement among 11 nations including Canada and Mexico. Trump said he plans to develop one-on-one agreements instead. – YaleGlobal