The Trump administration has prepared a draft executive order that would withdraw the U.S. from NAFTA, according to an article in Politico.
President Trump has long been a critic of NAFTA citing it as an example of poor trade policy. In his first days in office Trump signed an executive order withdrawing the U.S. from the Trans-Pacific Partnership, which the Obama administration had earlier approved.
Trump made ‘America First’ that hallmark slogan of his 2016 campaign for the presidency and has made no secret that he believes that many trade agreements have been unfair to the U.S.
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.
— President Donald J. Trump
The executive order announcing the U.S. intention to withdraw from the treaty will start the clock ticking on ending NAFTA. It will also put pressure on Mexico and Canada to consider possible modifications to the agreement to make it more favorable to the U.S. as a way of keeping the treaty in place.
The U.S. currently has a trade deficit with Mexico and Candida of $74 billion a year and Trump has vowed to reduce that amount.