US President Donald Trump on Wednesday told the leaders of Mexico and Canada that he would not immediately pull out of the North American Free Trade Agreement (NAFTA), just hours after officials in his administration said he was considering a draft executive order to do just that.
The White House made the surprise announcement in a read-out of calls between Trump, Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau.
“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,” the White House said.
Trump said he believes “the end result will make all three countries stronger and better.”
The Mexican government confirmed the conversation in a statement issued late on Wednesday.
Trudeau’s office issued a brief statement saying: “The two leaders continued their dialogue on Canada-US trade relations, with the prime minister reinforcing the importance of stability and job growth in our trade relations.”
The White House announcement came hours after US administration officials said Trump was considering a draft executive order to withdraw the US from the deal — though administration officials cautioned it was just one of a number of options being discussed by the president and his staff.
Some saw the threat as posturing by Trump to gain leverage over Mexico and Canada as he tries to negotiate changes to the deal. Trump railed against the decades-old trade deal during his campaign, describing it as a “disaster.”
Senior White House officials the past few days discussed steps that could be taken to start the process of renegotiating or withdrawing from NAFTA before the end of Trump’s first 100 days in office, a person familiar with the president’s thinking said.
The administration on Wednesday appeared to be divided over how and when to proceed, as they balanced a newfound cautiousness with the desire to rack up accomplishments before Trump’s 100th day on the job.
Some were gunning for Trump to sign a draft order this week, while others were weighing the complications surrounding withdrawing from or renegotiating the deal without the US Congress fully on board.
Trump could withdraw from NAFTA, but he would have to give six months’ notice, and it is unclear what would happen next. The law Congress passed to enact the trade pact might remain in place, forcing Trump to wrangle with lawmakers and raising questions about the US president’s authority to raise tariffs on Mexican and Canadian imports.
The decision came days after the administration announced it would slap hefty tariffs on softwood lumber being imported from Canada. Trump has also been railing against changes in Canadian milk product pricing that he says are hurting the US dairy industry.
The Trump administration last month submitted a vague set of guidelines to the US Congress for renegotiating NAFTA, disappointing those who were expecting Trump to demand a major overhaul.
In an eight-page draft letter to Congress, Acting US Trade Representative Stephen Vaughn wrote that the administration intended to start talking with Mexico and Canada about making changes to the pact, which took effect in 1994.
The letter spelled out few details and stuck with broad principles, but it appeared to keep much of the existing agreement in place, including private tribunals that allow companies to challenge national laws on the grounds that they inhibit trade — a provision that critics say allows companies to get around environmental and labor laws.
SEEKING CHANGE: A hospital worker said she did not vote in previous elections, but ‘now I can see that maybe my vote can change the system and the country’ Voting closed yesterday across the Solomon Islands in the south Pacific nation’s first general election since the government switched diplomatic allegiance from Taiwan to Beijing and struck a secret security pact that has raised fears of the Chinese navy gaining a foothold in the region. The Solomon Islands’ closer relationship with China and a troubled domestic economy weighed on voters’ minds as they cast their ballots. As many as 420,000 registered voters had their say across 50 national seats. For the first time, the national vote also coincided with elections for eight of the 10 local governments. Esther Maeluma cast her vote in the
Nearly half of China’s major cities are suffering “moderate to severe” levels of subsidence, putting millions of people at risk of flooding, especially as sea levels rise, according to a study of nationwide satellite data released yesterday. The authors of the paper, published by the journal Science, found that 45 percent of China’s urban land was sinking faster than 3mm per year, with 16 percent at more than 10mm per year, driven not only by declining water tables, but also the sheer weight of the built environment. With China’s urban population already in excess of 900 million people, “even a small portion
UNSETTLING IMAGES: The scene took place in front of TV crews covering the Trump trial, with a CNN anchor calling it an ‘emotional and unbelievably disturbing moment’ A man who doused himself in an accelerant and set himself on fire outside the courthouse where former US president Donald Trump is on trial has died, police said yesterday. The New York City Police Department (NYPD) said the man was declared dead by staff at an area hospital. The man was in Collect Pond Park at about 1:30pm on Friday when he took out pamphlets espousing conspiracy theories, tossed them around, then doused himself in an accelerant and set himself on fire, officials and witnesses said. A large number of police officers were nearby when it happened. Some officers and bystanders rushed
HYPOCRISY? The Chinese Ministry of Foreign Affairs yesterday asked whether Biden was talking about China or the US when he used the word ‘xenophobic’ US President Joe Biden on Wednesday called for a hike in steel tariffs on China, accusing Beijing of cheating as he spoke at a campaign event in Pennsylvania. Biden accused China of xenophobia, too, in a speech to union members in Pittsburgh. “They’re not competing, they’re cheating. They’re cheating and we’ve seen the damage here in America,” Biden said. Chinese steel companies “don’t need to worry about making a profit because the Chinese government is subsidizing them so heavily,” he said. Biden said he had called for the US Trade Representative to triple the tariff rates for Chinese steel and aluminum if Beijing was