23 August, 2017
President Donald Trump on Tuesday said he doubts the United States can reach a deal to renegotiate the North American Free Trade Agreement. "They have made such great deals-both of the countries but in particular Mexico-that I don't think we can make a deal".
Trump and other NAFTA critics say the agreement encouraged manufacturers to move south of the border to take advantage of lower-wage Mexican labour.
Suggesting a termination might help jumpstart the negotiations, Mr Trump said: "I personally don't think you can make a deal without a termination". "You're in good hands, I can tell you", he added.
The three nations started formal negotiations to tweak the trade agreement this month.
NAFTA did away with most barriers, including tariffs, on trade between the US, Canada and Mexico. It went into effect in 1994.
During his presidential campaign, Trump focused his attention on NAFTA, calling it the "worst trade deal in history", and vowed to rework or terminate any trade deal that negatively impacted American workers and the country's economy.
The Canadian and Mexican negotiators agree that NAFTA needs to be updated, but they have defended it as an economic success story for expanding trade between the three countries.
Talks to renegotiate the trade agreement involving Canada, Mexico and the United States got underway last week, after Mr. Trump threatened to scrap the treaty unless the US got better terms.
As the first round of NAFTA renegotiation closed on Sunday in Washington D.C., U.S. Trade Representative Robert Lighthizer has said his government is seeking to increase the percentage of local products mandated by NAFTA rules of origin, in order to reduce its trade deficit with Mexico.
