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US under Trump Series: US will not terminate NAFTA but renegotiate

President Donald Trump and his team decided against pulling the plug on North Atlantic Free Trade Agreement (NAFTA) after the President held two separate phone calls with the Canadian Prime Minister Justin Trudeau and the Mexican President Enrique Pena Nieto. The urgently arranged calls came on the back of a rumor/news that President Trump is planning to sign an executive order to declare the United States’ withdrawal from the agreement. Instead, the United States would renegotiate the terms of NAFTA. In a presented statement from the White House, President Trump said that it is his privilege to bring NAFTA up to date through renegotiations, which he believes that the end result would make all the three countries stronger and better.

Throughout his campaign, President Trump has been a fierce critic of NAFTA and blamed it as one of the primary reasons for manufacturing job losses in America. Both Canada and Mexico have previously admitted that they are ready to come to the table renegotiate the NAFTA deal, which was introduced 23 years back. However, President Trump can’t begin any formal negotiations and issue any notification of negotiation as the United States’ congress had not yet confirmed Robert Lighthizer, as Trump’s trade representative. So far, Mr. Lighthizer has been cleared by Senate committee.

Both Mexican peso and the Candian dollar have cheered the decision. The Canadian dollar is currently trading at 1.358 per dollar, up 0.3 percent so far today. The Mexican peso is trading at 18.98, up more than a percent so far today.

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