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October 22, 2019

US will not withdraw from NAFTA

Trump thinkingUS will not withdraw from the North American Free Trade Agreement (NAFTA), said US President Donald Trump in a telephone conversation with the leaders of Canada and Mexico. For now, Trump will not interfere the operation of NAFTA. Trump, Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudo have agreed to proceed swiftly, according to the necessary internal rules, to renegotiate the trade agreement for the benefit of the three countries.

The White House emphasizes that the head of state has held “a pleasant and productive conversation”.

“I am honored to modernize NAFTA through negotiations, and I believe the end result will make these three countries stronger and better”, said Trump.

The Mexican Peso and the Canadian Dollar jumped to the forex markets after the White House announcement. Peso added 1.1%, recovering much of the yesterday’s drops. The Canadian dollar rose by 0.6%, interrupting a four-day negative series.

Donald Trump’s advisers have been debating for a while how aggressively they can re-negotiate NAFTA. The Hardliners insist on a swift withdrawal of the US from the deal before the first 100 days of the US president’s expiry, while others insist on a softer approach.

It is not yet clear who Trump’s advisers have listened to for the final decision.

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