President Trump told the American people Monday that that the United States and Mexico have agreed to revise the North American Fair Trade Agreement (NAFTA). The changes will be finalized within days. He claims the new deal could replace NAFTA.
The commander-in-chief says he is ready to penalize Canada if they are not willing to “negotiate fairly.” He plans to hit Canada with auto tariffs if they complicate the situation.
Trump told the press, “They used to call it Nafta,” Mr. Trump said. “We’re going to call it the United States Mexico Trade Agreement,” adding that the term Nafta — which he has called the “worst” trade deal in history — had “a bad connotation” for the United States.
In reality, the deal is simply a revised version of the already-existing NAFTA. The updates include provisions pertaining to digital economy, automobiles, and labor unions. The core values of the original agreement remains intact. American companies will still be allowed to operate in Mexico and Canada without tariffs.
Although Trump seems ready and willing to move on and ink the deal with or without Canada, this would leave the United States in a less competitive predicament when it comes to production.Lawmakers advised it may not be legally permissible. Businesses whose supply chains depend on a deal encompassing Canada, Mexico and the United States would be in trouble.
Jay Timmons, president and chief executive of the National Association of Manufacturers, said “Because of the massive amount of movement of goods between the three countries and the integration of operations which make manufacturing in our country more competitive, it is imperative that a trilateral agreement be inked.”Social media contests by Rewards Fuel