Published: Fri, May 19, 2017
Business | By Max Garcia

Trump Administration to renegotiate NAFTA

Trump Administration to renegotiate NAFTA

"The planned negotiations should not weaken or undermine Nafta given its many benefits for the United States", the letter said. "Achieving this objective starts with ensuring the negotiations protect USA agriculture's benefits under the current trade agreement".

Republican Senator Orrin Hatch, chairman of the Finance Committee, said on Thursday he was confident the administration and Congress could strengthen the trade deal and preserve partnerships with Canada and Mexico. The administration has made reducing the trade deficit a priority, and Lighthizer suggested Thursday the USA will seek to lure back firms that have moved production to Mexico.

"The Trump Administration understands that NAFTA has been an unequivocal success story for American agriculture", said Spurlock. "As with every trade deal, I'll hold this Administration's approach to NAFTA to the same standard I've always used: does it put OH workers first?"

Wheat farmers also want to protect the gains they've made under the trade deal. He opted for discussions with Canadian and Mexican officials to renegotiate the accord.

In the letter to Congress, Ambassador Lighthizer expresses the Trump Administration's commitment to concluding the negotiations with timely and substantive results for USA consumers, businesses, farmers, ranchers, and workers.

The U.S. can be expected to play hardball when the NAFTA negotiations begin, but its negotiators shouldn't expect Canada and Mexico to accept a deal that is counterproductive to their own economies.

US wheat industry officials say renegotiating NAFTA could bring benefits, but they urge caution.

In the letter Lighthizer points out that NAFTA was negotiated 25 years ago and many of its provisions don't "reflect modern standards".

Mexican officials welcomed the Trump administration's announcement Thursday.

"NAFTA has been vital to the growth of the USA insurance industry, but as with any agreement that's almost a quarter of a century old, NAFTA can be improved".

Canada Foreign Affairs Minister Chrystia Freeland, who met with Lighthizer on Tuesday and meets her Mexican counterparts in Mexico City next week, also said the negotiations must be among the three nations. "Congress looks forward to working hand-in-hand with the Trump administration to achieve the best deal possible for American workers and our economy", Ryan said in a statement.

"He said that was quite intentional", she said.

Trump has repeatedly called NAFTA unfair to the USA and a "terrible" deal.

The Council of Canadians, a citizen's advocacy group that has campaigned against NAFTA, said Prime Minister Justin Trudeau must make sure that "NAFTA doesn't harm the planet or our communities". "Our integrated economies and supply chains support millions of jobs across the continent". "We are prepared, we are ready to work together.to make this trade agreement better". However, there are certainly specific challenges within fresh produce that NAFTA modernisation can aggressively address, so we are pleased that this opportunity has been realized by the Administration.

She says almost nine million U.S. jobs depend on trade and investment with Canada.

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