In what was described as “pleasant and productive” phone calls with President Enrique Peña Nieto and Prime Minister Justin Trudeau, President Trump said on Wednesday that he would not terminate the NAFTA treaty immediately, but would continue renegotiating.
“President Trump agreed not to terminate NAFTA at this time and 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,” read a statement from the White House on Wednesday.
“It is my privilege to bring NAFTA up to date through renegotiation. It is an honour to deal with both President Peña Nieto and Prime Minister Trudeau, and I believe that the end result will make all three countries stronger and better,” said Trump, quoted in the same statement.
During his Presidential campaign, Trump repeatedly referred to the 23-year-old trade pact as “very, very bad” for the country and promised he would remove the United States from it if he could not negotiate various improvements.
“It’s been very, very bad for our companies and for our workers, and we’re going to make some very big changes, or we are going to get rid of Nafta once and for all.” the US President said last week.
Whilst withdrawing from Nafta would allow the US President to deliver one of his key election promises, it could also negatively impact industries in many of the states that supported him.
“Mr. President, America’s corn farmers helped elect you. Withdrawing from NAFTA would be disastrous for American agriculture.” said the National Corn Growers Association in a statement.
There is still every chance that the free trade agreement may still be terminated by the US if “we do not reach a fair deal for all”, Trump posted on Twitter. Trump will continue to renegotiate and remain part of the agreement – for now.