Thursday, April 27, 2017

Trump Decides Not to Withdraw from Nafta

Donald Trump has decided not to pull the US out of the North American Free Trade Agreement, agreeing instead with his Canadian and Mexican counterparts to “proceed swiftly” with negotiations to update the deal, according to the White House.

According to the Financial Times, the move came in hastily arranged calls between the three leaders after news leaked that the White House was considering unveiling an executive order on Saturday that would have laid the groundwork for a US withdrawal.

In a statement, the White House said Trump had agreed with Mexico’s Enrique Peña Nieto and Prime Minister Justin Trudeau of Canada in separate calls on Wednesday to pursue the “renegotiation of the Nafta deal to the benefit of all three countries”.

“It is my privilege to bring Nafta up to date through renegotiation,” the statement quoted the president as saying. “I believe that the end result will make all three countries stronger and better.”

Since Trump has no understanding of the basics of free trade and is a mercantilist and protectionist do not expect anything positive out of these negotiations. It will be the most powerful US, Mexican and Canadian crony exporters that will gain at the expense of consumers.

In an interview with Bloomberg, Canada’s foreign minister Chrystia Freeland said on Wednesday: “When it comes to Nafta, we are ready to come to the table any time.” 

In an interview with the Financial Times, Ildefonso Guajardo Villarreal, Mexico’s economy minister, said his government was consulting with Washington and conscious of the new president’s desire to bring manufacturing jobs back to the US. “We are trying to work with his team,” he said. 

There are no such negotiations required for real free trade, only for crony trade.

Real trade could be outlined in two sentences: Let there be trade. The borders are open to goods manufactured elsewhere.



  1. The Mexican and Canadian government should tell Trump that they do not negotiate with hostage takers...

  2. Flip flopping bastard, what an idiot

  3. I can't tell whether this blog is cheering the decision to remain in NAFTA? Yesterday the same blog said NAFTA was better than no NAFTA.

  4. Oh, so you mean this was just a negotiating tactic? Man, I wonder if anyone saw this coming? Oh yeah, me on your last knee-jerk post about NAFTA.
    Are you really not understanding how Trump works yet? Yeah, he sucks. But he is using different tactics that any President in recent memory. Figure it out already.

    1. Negotiating what?

      With free trade you don't need any negotiations.

      Your delusional. Trump just put a 20% tax on Canadian limber. He has no clue.

      And, oh yeah, FDR was clever with his tactics getting us into World War 2.

      You need to break free of the Scott Adams hypnotic spell you are under.

    2. Haha. Yes, we're all just playing checkers while Trump is playing 8-d quantum chess!

    3. No, but Rob is correct. Trump takes the extreme position before negotiating so when he negotiates he gets 75% of what he wants and the other guy thinks it's not great, but better than it could have been.

    4. Are you thick? The problem is what Trump is negotiating for: More Protectionism

    5. Felix stop speaking like a liberal.
      "Your (you mean you're) delusional"
      "Are you thick?"
      Step YOUR game up.
      Stuffed Pimento gets what I'm saying. Trump has done this over and over again.
      I know free trade needs no negotiating so miss me with YOUR lessons.