In last 3 months, we got ideas regarding economic policies of Trump administration and one of the most interesting topics right now if US will renegotiate NAFTA with Canada and Mexico. Earlier on Thursday, he told to reporters that renegotiating the deals is very possible although he vowed that US would scrap the pact if the countries failed to reach a fair deal for everyone.
ON Thursday, he said on Twitter, “I received calls from the President of Mexico and the Prime Minister of Canada asking to renegotiate NAFTA rather than terminate. “I agreed … subject to the fact that if we do not reach a fair deal for all, we will then terminate NAFTA. Relationships are good – deal very possible!”
In the past, Trump has repeatedly vowed to scrap the Free Trade Agreement unless the countries reach a better terms for US. Since the initiation in early 1990s with the deficit running upwards to $63 billion in 2016.
This news comes after White House said that Trump had talked with both Mexican and Canadian Prime Ministers as White House officials said to be considering efforts to withdraw from the agreement. On Wednesday however, White House said, “The leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries.”
If the agreement falls through, it might have several devastating effects on the whole economy. Since the news first broke out, Mexican and Canadian currencies started getting stronger and U.S. Dollar dropped nearly 0.3 percent.
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