President Trump intends to renegotiate NAFTA
- Author: Leroy Wright May 22, 2017,
May 22, 2017, 6:57
National Council of Textile Organizations (NCTO) has welcomed the decision of the Trump administration to renegotiate the North American Free Trade Agreement (NAFTA). The notification begins a 90-day period in which Trump trade officials must consult with Congress on the objectives of the trade talks. While U.S. politicians have called the tax an unfair subsidy, Mexico argues the system is in line with worldwide trade rules.
According to the USA census the United States exported more than $2 trillion worth of goods.
Freeland stressed that "NAFTA's track record is one of economic growth and middle-class job creation, both here in Canada and throughout North America". In fact, USA manufacturing exports to Canada and Mexico have increased almost 260% over the past 23 years, and US farm exports to the countries have grown by more than 150%. "We are steadfastly committed to free trade in the North American region and to ensuring that the benefits of trade are enjoyed by all Canadians".
Recently the Trump administration announced a mini-deal with China on trade - the first fruits of a larger effort to renegotiate the U.S. "Exports are one pillar of a strong farm economy, accounting for 31% of farmer income". Since NAFTA was implemented, USA agricultural exports to Canada and Mexico have tripled and quintupled, respectively. China was the largest market, importing $21.4 billion in American ag products past year.
"We are not satisfied to take a wait-and-see approach when it comes to any renegotiation of NAFTA", Wynne said in a statement.
"Canada and Mexico are top pork export markets".
US Commerce Secretary Wilbur Ross said he looks forward to working with Trump, Lighthizer, and their counterparts in Canada and Mexico, "to find a solution that is both fair and beneficial for all parties".
The letter to U.S. Trade Representative Robert Lighthizer was signed by 18 senators, including U.S. Sens.
Back in March, a draft of a letter sent to lawmakers said the Trump administration would seek tax equality and the ability to slap tariffs on Mexican and Canadian imports if they pose a serious injury threat to US industry.
"NAFTA is the most critical free trade agreement on the books for USA grain farmers, providing open access to countries that are among our top corn, sorghum and barley export markets, as well as significant and growing markets for distiller's dried grains with solubles (DDGS) and meat products made using grain", Counsell says. "NFU urges them to do so in a fashion that does not upset the positive trade relations the US agriculture community relies upon".