Trump to Meet With Canadian PM, Mexican President on NAFTA Soon
President Donald Trump will meet with Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau over the next month or so in the hopes of renegotiating NAFTA, White House Press Secretary Sean Spicer said during a Jan. 23 press conference (here). The three leaders will try to negotiate an agreement within the "existing structure" of the three-pronged agreement, Spicer said. However, if there's persistent disagreement "and [Trump] decides to pull out, then we would have to go back to the drawing table in the future," he said.
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Asked whether to expect an executive order to renegotiate NAFTA, Spicer said the White House will have more trade announcements "throughout the week." "Stand by," Spicer said. "I believe there could be some additional [executive orders] throughout the week on trade, and we'll have further updates for you on there." The Senate Finance Committee has not announced a confirmation hearing date for Trump's pick for U.S. trade representative, Robert Lighthizer, who was nominated on Jan. 3. The committee didn't comment.
The American Soybean Association (ASA) in a Jan. 24 statement (here) urged Trump to protect the gains that U.S. farmers have realized under the agreement, yet noted an interest in discussing how to reduce non-tariff barriers and the "few remaining tariffs" on U.S. agricultural products sold to the other two NAFTA nations, as part of the deal's renegotiation. "Given the size and impact of the Mexican and Canadian markets for American soybean producers, we’re watching the Administration’s decisions very, very closely, and it’s fair to say that we’re nervous," ASA President Ron Moore said in a statement. "For the last 20 years, NAFTA has been a core component in the growth of soybeans as a positive contributor to the U.S. balance of trade. Overall, U.S. ag exports to Mexico and Canada have more than quadrupled since NAFTA enactment." Agricultural exports to those nations rose from $8.9 billion to $38.6 billion between 1993 and 2015, Moore noted.
As the U.S. and Mexico consider a new NAFTA, they should ramp up efforts to ensure their border becomes more effective in promoting commerce and legitimate travel, as well as beef up security against terrorists and illicit drug, arms, money and human trafficking, according to a January 2017 North American foreign policy paper released by the Wilson Center Mexico Institute (here). Improving commercial and travel flows across both U.S. borders will save North American producers and consumers several billions of dollars, said the authors, Earl Wayne and Arturo Sarukhan of the Mexico Institute.