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World
27 Apr 2017

Trump tells Canada and Mexico that US isn't terminating NAFTA

President Donald Trump told Canadian PM Justin Trudeau and Mexican President Enrique Pena Nieto that America won't be leaving the North American Free Trade Agreement (NAFTA).

Trump has instead called for a renegotiation of NAFTA, according to a White House readout of phone calls between the leaders.

During his election campaign, Trump had been critical of NAFTA and threatened to terminate the agreement.

In context

Trump: US won't terminate NAFTA at this time

What is NAFTA?

NAFTA was signed by US President Bill Clinton in 1993 and implemented in 1994. The agreement eliminated tariffs on most goods traded between US, Canada and Mexico and expanded trade among them.

Trump calls for Mexico and Canada to renegotiate NAFTA

Renegotiate

Trump calls for Mexico and Canada to renegotiate NAFTA

"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 readout says.

Trump said, "it is my privilege to bring NAFTA up to date through renegotiation."

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NAFTA opposition

Trump has been a longstanding critic of NAFTA

During his election campaign, Trump had labelled NAFTA a "disaster" and the "worst trade deal in history."

He has repeatedly slammed the trade deal as president. Last week, he called it "very, very bad" for American companies and workers.

"We're going to make some very big changes or we're going to get rid of NAFTA once and for all," Trump had said earlier this month.

Nieto and Trudeau respond favourably following Trump call

Response

Nieto and Trudeau respond favourably following Trump call

Mexican President Pena Nieto's office said the leaders have agreed to maintain NAFTA and "carry out a successful renegotiation for the benefit of the three countries."

The Canadian PM's office said Trudeau and Trump "continued their dialogue on Canada-US trade relations, with the Prime Minister reinforcing the importance of stability and job growth in our trade relations."

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