The White House is currently preparing an executive order, which would effectively withdraw the U.S. from NAFTA, the historic trade agreement we entered into with Canada and Mexico in early 1994 during Bill Clinton’s presidency.
Now entering into the final stages of review, a draft order was submitted and we could be looking at this new order being unveiled later this week or early into next week.
The Trump administration is considering an executive order on withdrawing the U.S. from NAFTA, according to two White House officials.
A draft order has been submitted for the final stages of review and could be unveiled late this week or early next week, the officials said. The effort, which still could change in the coming days as more officials weigh in, would indicate the administration’s intent to withdraw from the sweeping pact by triggering the timeline set forth in the deal.
The approach appears designed to extract better terms with Canada and Mexico. President Donald Trump pledged on the campaign trail to renegotiate NAFTA, a trade deal signed in 1994 by former President Bill Clinton that removes tariffs and allows for the free flow of goods and services between the three countries in North America. Trump in recent weeks has stepped up his rhetoric vowing to terminate the agreement altogether.
The President has commented more than once on the negative role NAFTA has played in regards to the U.S., saying:
NAFTA’s been very, very bad for our country . . . It’s been very, very bad for our companies and for our workers, and we’re going to make some very big changes or we are going to get rid of NAFTA once and for all.
Some are speculating that the executive order could be a bargaining tactic by Trump to get better terms out of Canada and Mexico, but for now we have to just wait and see. NAFTA has created a multi-billion dollar trade deficit for the United States, so a renegotiation is a huge win for Americans!