Donald Trump has decided not to pull the US out of the North American Free Trade Agreement, agreeing instead with his Canadian and Mexican counterparts to “proceed swiftly” with negotiations to update the deal, according to the White House.
According to the Financial Times, the move came in hastily arranged calls between the three leaders after news leaked that the White House was considering unveiling an executive order on Saturday that would have laid the groundwork for a US withdrawal.
In a statement, the White House said Trump had agreed with Mexico’s Enrique Peña Nieto and Prime Minister Justin Trudeau of Canada in separate calls on Wednesday to pursue the “renegotiation of the Nafta deal to the benefit of all three countries”.
“It is my privilege to bring Nafta up to date through renegotiation,” the statement quoted the president as saying. “I believe that the end result will make all three countries stronger and better.”
Since Trump has no understanding of the basics of free trade and is a mercantilist and protectionist do not expect anything positive out of these negotiations. It will be the most powerful US, Mexican and Canadian crony exporters that will gain at the expense of consumers.
In an interview with Bloomberg, Canada’s foreign minister Chrystia Freeland
said on Wednesday: “When it comes to Nafta, we are ready to come to the table any time.”
In an interview with the Financial Times
, Ildefonso Guajardo Villarreal
, Mexico’s economy minister, said his government was consulting with Washington and conscious of the new president’s desire to bring manufacturing jobs back to the US. “We are trying to work with his team,” he said.
There are no such negotiations required for real free trade, only for crony trade.
Real trade could be outlined in two sentences: Let there be trade. The borders are open to goods manufactured elsewhere.