Trump Claims He Will Withdraw US From NAFTA

Donald Trump says he'll terminate Nafta

The original NAFTA deal has landed back atop Donald Trump's hit list, with the USA president again declaring he intends to terminate the 24-year-old trade pact - a move that appears created to pressure lawmakers on Capitol Hill into approving its recently negotiated successor.

Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto signed a new trade agreement on Friday known as the United States-Mexico-Canada Agreement (USMCA). If Trump pulls out of NAFTA and the House rejects the new pact, it could deal a major blow to North American free trade.

"While we'll have to watch and ensure we get through this next stage, we have a high level of confidence that's achievable".

The president, who made getting rid of NAFTA one of the signature issues of his campaign, is forcing the hand of Democrats who will take control of the House in January after winning seats in the midterm elections.

Other Democrats, backed by unions that oppose the pact, have called for stronger enforcement provisions for new labour and environmental standards, arguing that USMCA's state-to-state dispute settlement mechanism is too weak.

Massachusetts Democrat Elizabeth Warren, a member of the Senate Armed Services Committee and one of more than a dozen names believed to be eyeing a presidential run in 2020, has added her name to the list of lawmakers who say they won't support the new agreement in its current form.

The issue could ultimately be decided by the U.S. courts.

Although the three country leaders agreed to the new terms, lawmakers in each country still need to ratify the deal. It's been a disaster for the United States.

President Donald Trump, Canada's Prime Minister Justin Trudeau, right, and Mexico's President Enrique Pena Nieto, left, participate in the USMCA signing ceremony, Friday, Nov. 30, 2018 in Buenos Aires, Argentina.

Trump had forced Canada and Mexico to renegotiate the 24-year-old agreement because he said it encouraged U.S. companies to move jobs to low-wage Mexico.

Asked whether Canada took Trump's comments seriously, Morneau replied: "We take everything seriously".



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