Trump signs order to expand ocean oil drilling

Laura Christensen
May 11, 2017

President Donald Trump hedged his agreement to renegotiate - rather than exit NAFTA - with a warning to Canada and Mexico yesterday that the United States will jettison the trade accord if there is no "fair deal".

On Wednesday, the White House said Trump had spoken with Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau and agreed not to terminate Nafta at this time.

President Donald Trump decided against terminating the NAFTA treaty after the leaders of Mexico and Canada called him and asked him to work on a new trade between the three countries. I think it's time we stood up for ourselves and fought for Americans and American producers.

"I highlighted quite frankly. that a disruption like cancelling Nafta, even if it theoretically eventually might lead to better outcomes, would cause a lot of short- and medium-term pain".

US cereal producers, meanwhile, said they were "shocked and very worried" about the fate of NAFTA.

News of the potential presidential action to withdraw from NAFTA earlier drove the Mexican and Canadian currencies lower.

Some analysts suggested that with the Trump administration approaching its 100-day mark and the clock ticking on NAFTA, the draft order could have been an attempt for the US president to flex some muscle.

White House spokesman Sean Spicer said that while Trump is open to renegotiation, he is serious about a possible exit from the trade deal. It's been very good for Mexico.

Japan, China, South Korea agree to resist United States protectionism
During a trilateral meeting in Yokohama, Japan, on Friday, finance ministers of the three countries agreed to resist all forms of protectionist policies obstructing free trade.

After the talks, Trump was convinced "they're serious about it and I will negotiate rather than terminate", the president said in an interview with The Wall Street Journal on Thursday. He went further on Thursday, saying that withdrawal would be a "pretty big shock to the system" and that "we're going to give renegotiation a good, strong shot". They had not met each other previously.

"There's broad range of options and paths available to us that we're looking at but it is certainly my preference that we be able to sit down and discuss in a firm but responsible and polite way the different ways we can move forward", Trudeau said.

The latest dairy trade row was triggered when Canada extended those policies to apply to ultrafiltered milk, a product used in cheese production and at the centre of a thriving United States export business.

It also states NAFTA is responsible for "waves" of illegal immigration and the closure of "tens of thousands of factories and manufacturing establishments" in the U.S.

He reiterated his long-standing assertion that the 1994 trade agreement has been "very good for Canada". Instead, he said the deal will be renegotiated. He has said businesses that choose to move plants outside the country would pay a price.

Early in his presidency, Mr Trump fulfilled a campaign pledge by signing an executive order to withdraw from the Trans-Pacific Partnership (TPP).

On his third day as Secretary of Agriculture, newly confirmed Sonny Perdue visited a USDA facility in Kansas City designated as a "devolution" facility if something were to happen in Washington, D.C.

American Soybean Association President Ron Moore said, "When you're talking about US$3 billion in soybean exports a year, any threats to withdraw from agreements and walk away from markets makes farmers extremely nervous".

Other reports by My Hot News

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