Canadian government officials believe a U.S. withdrawal from NAFTA is increasingly likely, Reuters reported Jan. 10. Based on two Canadian government sources, Reuters reported that there's an expectation for President Donald Trump to announce withdrawal around the time the U.S., Canada and Mexico meet later this month to discuss renegotiations of the deal.

The Trump administration's review of NAFTA and all other trade agreements will result in fairer terms for U.S. interests, President Donald Trump said in a Jan. 8 speech at the American Farm Bureau Annual Convention in Nashville. "To level the playing field for our great American exporters -- our farmers and ranchers, as well as our manufacturers -- we are reviewing all of our trade agreements to make sure they are fair and reciprocal -- reciprocal, so important," he said. "On NAFTA, I am working very hard to get a better deal for our country and for our farmers and for our manufacturers. It’s under negotiation as we speak. But think of it: When Mexico is making all of that money, when Canada is making all of that money, it’s not the easiest negotiation. But we’re going to make it fair for you people again."

President Donald Trump again sent to the Senate the nomination of CBP Acting Commissioner Kevin McAleenan to be permanent commissioner, the White House said in a Jan. 8 notice. The Senate recently sent McAleenan's nomination back to the White House under rules for nominations the chamber doesn't act on before the end of an annual session (see 1801050008). The Senate Finance Committee will need to again approve the nomination before it's considered again by the full Senate. The White House also sent back to the Senate the nominations of Ann Marie Buerkle to be chairman and Dana Baiocco to be a commissioner of the Consumer Product Safety Commission.

Any work toward a free trade agreement between the U.S. and the Philippines should be supported, U.S. Chamber of Commerce Southeast Asia Senior Director John Goyer said in a blog post. The possibility of such an FTA came up during President Donald Trump's visit to the country in November (see 1711130012). "A trade agreement between the two countries is potentially a new opportunity to establish high standards, including those which the administration abandoned when it pulled out of the [Trans-Pacific Partnership]. It is an opportunity for the Trump administration to demonstrate leadership on trade by taking positive, concrete steps to strengthen U.S. economic engagement in Asia."

The NAFTA renegotiation is going “pretty good,” despite its first iteration “being a terrible deal for us,” President Donald Trump said in an interview with The New York Times published Dec. 28. Trump’s words differ in tone from harsher characterizations of trade talks earlier this year, including an August tweet (see 1708280025). However, Trump did say he would “terminate NAFTA in two seconds” if he doesn’t “make the right deal.” Trump also cited a projected $17 billion average goods trade deficit with Canada for 2017, when oil and lumber are factored in, as well as an anticipated $71 billion yearly goods trade deficit with Mexico for this year.

President Donald Trump issued an executive order on Dec. 20 to reduce U.S. “vulnerability” to disruptions in the supply of critical minerals, and direct the identification of new mineral sources and increased domestic exploration and mining, among other activities. The U.S. "is heavily reliant on imports of certain mineral commodities that are vital to the Nation’s security and economic prosperity," creating a military “strategic vulnerability” to “adverse” foreign action and natural disasters, the order says. “An increase in private‑sector domestic exploration, production, recycling, and reprocessing of critical minerals, and support for efforts to identify more commonly available technological alternatives to these minerals, will reduce our dependence on imports, preserve our leadership in technological innovation, support job creation, improve our national security and balance of trade, and enhance the technological superiority and readiness of our Armed Forces,” the order says.

President Donald Trump on Dec. 22, signed into law tax legislation that will cut excise taxes on beer, wine and distilled spirits in 2018 and 2019 (see 1712180033), as well as a continuing resolution that will keep the government funded and open through Jan. 19, the White House announced.

President Donald Trump’s National Security Strategy released Dec. 18 firmly links trade with overall U.S. strength, as the 55-page document repeatedly commits to combat unfair trade practices and pledges that the U.S. will work to improve the performance of multilateral organizations. The U.S. will “continue to play a leading role” in institutions including the World Trade Organization, the World Bank and International Monetary Fund, but will push “reforms” to boost their effectiveness, including pressing to make WTO dispute settlement more efficient, the strategy says. The document refers to U.S. “trade imbalances” several times, and insists trading partners and multilateral organizations can “do more” to address them and “adhere to and enforce the rules” of the international order. Finally, the document says new and updated bilateral trade and investment agreements are a priority for countries exhibiting “fair and reciprocal” trade.

President Donald Trump on Dec. 8 signed stopgap legislation to keep the federal government funded and open through Dec. 22. Congressional Democrats and Republicans, and Trump, are negotiating whether certain provisions should be added to a longer-term funding bill, including more hurricane disaster aid for Texas, Florida, and Puerto Rico.

President Donald Trump on Dec. 8, issued a memo to Small Business Administration Acting Chief Counsel for Advocacy Major Clark directing the delay of a required report submission to Congress on NAFTA’s small business impacts. The Trade Facilitation and Trade Enforcement Act generally requires the executive branch to submit to Congress a report on the economic impacts of a covered trade agreement no less than 180 days after a TFTEA-required interagency working group for that trade agreement is convened. However, TFTEA also allows the delay of the report’s submission until after negotiations are concluded, but no later than 45 days before the Senate or House “acts to approve or disapprove the trade agreement,” the memo says.