The Trump administration yesterday took the first formal step toward overhauling the North American Free Trade Agreement (NAFTA) by notifying Congress of its intent to renegotiate NAFTA with Canada and Mexico in 90 days.President Trump has called NAFTA a “disaster” in the past and has held out the threat of pulling out of the trade pact
The recently confirmed U.S Trade Representative Robert Lighthizer sent a letter to lawmakers giving notice to Congress of a 90-day consultation period, which is required under fast-track trade legislation. Lighthizer, a veteran trade lawyer and negotiator, took a conciliatory tone in his letter to lawmakers, noting that “as a starting point for renegotiations, we should build what has worked in NAFTA and change was has not.” He said that his Mexican and Canadian trade counterparts were “all entering the process in good faith.” Talks could be launched with Canada and Mexico as soon as August 16.
In Lighthizer’s letter formally notifying Senate Democrat Leader Charles E. Schumer of New York, Lighthizer described the broad goal of renegotiations as getting a deal that would produce higher-paying jobs for Americans and grow the economy. He also said that specific U.S. objectives for a revised NAFTA would be provided to Congress 30 days before the actual talks began and he hoped that negotiations could be concluded this year.
Lighthizer has said that NAFTA, which took effect in January 1994, had proved successful for some sectors, including investment services, agriculture, and energy. But, manufacturing is an area of deficiency, particularly involving Mexico. He also said that NAFTA did not include provisions related to digital trade and matters of the environment. “Our aim is that NAFTA be modernized,” Lighthizer said in his letter to Senator Schumer.
