The President of the United States Donald trump is likely to sign an official decree, formally exempting the United States from the North American free trade agreement (NAFTA). This writes the newspaper The New York Times, citing a senior official of the administration.
While not reported, what will be the wording of the decree, and what specific steps will be spelled out in it. It is noted that the document will start a six-month period required under the contract to notify the agreement parties. During this period it will be possible to negotiate new terms.
In recent days the White house has announced that it will set duties on canadian lumber, claiming that Canada did not fair with the American dairy industry.
The NAFTA agreement between USA, Canada and Mexico entered into force in 1994. Within it were abolished or reduced duties on large quantities of goods. In particular, this led to the restructuring of the automotive industry — American manufacturers prefer to place power in Mexico.
During his presidential campaign, trump called NAFTA “the worst trade deal” that ever entered into the United States. However, last month he reportedly was inclined to reject the withdrawal from the agreement in favour of its revision. In the draft letter circulated to members of Congress, the administration has proposed to add a provision allowing you to recover duty if the flow of imports will threaten to harm the domestic industry.
Earlier, on 23 January, trump signed a decree on the country’s withdrawal from the TRANS-Pacific partnership — a trade agreement between 12 countries in the Asia-Pacific region. In addition, as announced by Vice-President Mike Pence, the United States will review the free trade agreement with South Korea.