The Globe and Mail reports in its Tuesday edition that President Donald Trump could declare the North American free-trade agreement talks are going
nowhere and decide to end the agreement. The Globe's John Ibbitson writes that while Mr. Trump may terminate American participation in
NAFTA, with six months notice, dismantling the actual laws and
regulations would be problematic without
Congressional support. Canada West Foundation Trade and Investment Centre director Carlo Dade says: "This is new constitutional territory. The U.S. has never withdrawn from an agreement
before." Congress would be under enormous pressure to preserve
NAFTA from governors fearful of the economic consequences
for their states.
As a result, Prime Minister Justin Trudeau's cabinet ministers have spent much time
on the Hill and in state capitals working to convince stakeholders
that NAFTA has been as good for the U.S. as it has been
for Canada. Think of it as an insurance policy, in case Mr. Trump
goes off the rails.
A lot, however, could go wrong, including Congressional gridlock. Better
that the negotiators conclude a new agreement that
modernizes and improves NAFTA, while leaving the free-trade
essentials intact.
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