Tuesday, August 28, 2018

Trump Dumps NAFTA for New Trade Pact with Mexico, Invites Canada to Join

President Donald Trump called a new, preliminary deal with Mexico "The U.S.-Mexico Trade Agreement," announcing Monday that he had kept a campaign promise to terminate the North American Free Trade Agreement.

NAFTA consisted of the United States, Mexico, and Canada.

Trump said he wanted to include Canada as well in a replacement trade pact.

"NAFTA was out of whack. It led to serious trade deficits," Lighthizer told reporters in a conference call after Trump made the announcement.

The White House contends that NAFTA contributed to the United States' trade deficit, which grew from $115 billion in 1993, the year before NAFTA's implementation, to nearly $800 billion in 2017.

The United States went from a $1.6 billion goods trade surplus with Mexico to a $70 billion goods trade deficit during that same time period, according to the White House.

The agreement between the U.S. and Mexico is a positive sign that some of the issues have been resolved, said Tori Whiting, a trade economist with The Heritage Foundation.

https://www.dailysignal.com/2018/08/27/in-ditching-nafta-trump-reaches-deal-with-mexico-invites-canada-to-join/ 

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