Mr Trump’s tough trade talk anxious Canadian politicians and industry, given the USA is the country’s largest trading partner.
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Several automakers have already been the target of Trump’s trade ire for plans to increase production in Mexico.
Trump also plans to sign an executive order stating he plans to renegotiate the North American Free Trade Agreement, although his path towards any modification of NAFTA will be significantly more hard, from a legal perspective.
Canadian ranchers have “little reason to worry” about President Donald Trump’s promise to “tear up” the North American Free Trade Agreement, the country’s main beef lobby said Monday.
Unfortunately, with trade best interest only works when speaking collectively between the participating parties. NAFTA, which was launched under President Bill Clinton in 1994 with the goal of opening up the movement of goods and services among the U.S., Mexico, and Canada.
“We’re going to start some negotiations having to do with NAFTA”. During the election campaign Trump had publicly praised his daughter Ivanka’s husband, saying ‘he’s very good at politics’. The AFL-CIO wants that chapter of Nafta thrown out, which seems consistent with Trump’s inauguration speech vow: “We will follow two simple rules: Buy American and hire American”.
Lisa Kopp, head of traditional investments at US Bank Wealth Management, said stock markets were coming back down to earth after the Trump rally. It said they “spoke about the importance of the Canada-Mexico bilateral relationship, and of the trilateral North American partnership”.
Because Congress has not done anything to ratify the long-negotiated agreement, Trump’s executive order could unilaterally remove the country from the trade deal.
The Canada-U-S relationship will be a hot topic when Prime Minister Justin Trudeau and the federal cabinet meet in Calgary today. Such a measure could affect Mexico’s exports to the United States, its top trading partner. Beyond stopping the export of blue collar jobs to Mexico, Mr Trump has really given very little indication of what he wants to see, beyond threatening potentially punitive tariffs on imports to the USA from Mexico.
Candidate Trump had called the TPP agreement with Japan, Malaysia, Australia and other nations “a potential disaster for our country”.
However, in early December, Anthony Scaramucci, a senior advisor on the Trump transition team, reassured a group of business leaders that scrapping the deal was out of question and Trump was only going to make it “fairer”.
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However, the agreement has become something of a contentious political issue in recent years, with critics from both parties suggesting it has ultimately harmed U.S. businesses and led to a decline in manufacturing jobs.
