President Trump’s team has in hand an executive order to withdraw U.S. from the North American Free Trade Agreement or NAFTA.
During President Trump’s election campaign trail in 2016, he promised the withdrawal from the trade agreement between Canada, Mexico and the US. He claimed the agreement is a “job killer” and was contradictory to his "America First" approach to governing.
The draft order that had been submitted and is in the final stages of review to the appropriate teams within the White House and is expected to be signed as early as the next few days.
NAFTA is one of the largest trade agreement in the world originally signed in 1994 by former President Bill Clinton. The agreement allows free trade between the three countries in North America.
During President Trump’s speech in Wisconsin, he recently said that the agreement is very bad for the countries companies and also for our workers. Either the country will make big changes or get rid of Nafta once and for all, he added.
White House confirmed that the bill was drafted by Peter Navarro, head of the National Trade Council and Trump strategist Steve Bannon.
Earlier on President Trump’s term, he decided not to join the Trans Pacific Partnership (TPP), which is also part of his election campaign as he railed against international trade deals, blaming them for job losses and focusing anger in the industrial heartland.
Aside from NAFTA, Trump also caused a rift with Canada because Canada lowered their price on domestic milk making US dairy farmers at a disadvantage in the market.
In response to this, Trump imposed a new tariff on Canadian softwood lumber being imported to the US. For several years, legal disputes over lumber imports and exports have been fought at the US Department of Commerce.
Withdrawing from NAFTA just intensifies the already shaky relationship between the US and Mexico as Trump consistently promises that he will build a nearly 2,000 mile border wall. The said wall will stop illegal immigrants from crossing the US border.