Out with the old: Trump to kill old NAFTA to push Congress to approve USMCA

Trump, Prime Minister Justin Trudeau and former Mexican president Enrique Pena Nieto signed the new U.S.-Canada-Mexico Agreement

President Donald Trump, center, reaches out to Mexico’s President Enrique Pena Nieto, left, and Canada’s Prime Minister Justin Trudeau as they prepare to sign a new United States-Mexico-Canada Agreement that is replacing the NAFTA trade deal, during a ceremony at a hotel before the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. The USMCA, as Trump refers to it, must still be approved by lawmakers in all three countries. (AP Photo/Martin Mejia)

President Donald Trump, center, reaches out to Mexico’s President Enrique Pena Nieto, left, and Canada’s Prime Minister Justin Trudeau as they prepare to sign a new United States-Mexico-Canada Agreement that is replacing the NAFTA trade deal, during a ceremony at a hotel before the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. The USMCA, as Trump refers to it, must still be approved by lawmakers in all three countries. (AP Photo/Martin Mejia)

The original NAFTA deal is back on top of Donald Trump’s hit list, with the U.S. president declaring he intends to terminate the 24-year-old trade pact — a move designed to pressure lawmakers on Capitol Hill to approve its recently negotiated successor.

Trump, Prime Minister Justin Trudeau and former Mexican president Enrique Pena Nieto signed the new U.S.-Canada-Mexico Agreement — USMCA, although the federal government in Ottawa has rechristened it CUSMA — during an awkward ceremony at the outset of G20 meetings Friday in Argentina.

Trump was on board Air Force One on his way back to Washington late Saturday when he announced that he would notify Congress of his intention to terminate NAFTA, a long-threatened move that would give lawmakers six months to approve its replacement once formal notice is delivered.

“I will be formally terminating NAFTA shortly,” the president said. “Congress will have a choice of the USMCA or pre-NAFTA, which worked very well. You got out, you negotiate your deals. It worked very well.”

A number of Democrats in Congress, empowered by their new majority in the House of Representatives, say they don’t like the new agreement in its current form, warning it will require more stringent enforcement mechanisms for new labour rules and protections for the environment in order to win their support.

Massachusetts Democrat Elizabeth Warren, a member of the Senate Armed Services Committee and one of more than a dozen names believed to be eyeing a presidential run in 2020, has added her name to the list of lawmakers who say they won’t support the new agreement in its current form.

“As it’s currently written, Trump’s deal won’t stop the serious and ongoing harm NAFTA causes for American workers. It won’t stop outsourcing, it won’t raise wages, and it won’t create jobs. It’s NAFTA 2.0,” Warren told a luncheon audience last week during a foreign policy speech in Washington.

She cited a lack of enforcement tools for labour standards, drug company “handouts” and a lack of sufficiently robust measures to cut pollution or combat climate change, particularly in Mexico.

“For these reasons, I oppose NAFTA 2.0, and will vote against it in the Senate unless President Trump reopens the agreement and produces a better deal for America’s working families.”

Some Republicans see problems, too: Florida Sen. Marco Rubio tweeted his fears that the current agreement gives agricultural producers in Mexico an unfair advantage.

“As currently drafted this deal will put Florida seasonal vegetable growers out of business,” Rubio wrote. “It allows Mexico to dump government-subsidized produce on the U.S. market.

“Going forward America will depend on Mexico for our winter vegetables. Unacceptable.”

Trade experts have long suspected Trump, who has made beating up on NAFTA a central feature of his political career, might play the termination card in an effort to light a fire under the deal’s critics.

In a blog entry posted shortly after the agreement was signed Friday, Cato Institute trade analyst Simon Lester appeared to anticipate Trump’s move — although he acknowledged it would have made a lot more sense if the Republicans still had control of Congress.

“The Democrats are in a different position,” Lester wrote.

“Many of them don’t like NAFTA to begin with, so a withdrawal threat wouldn’t feel so threatening. Furthermore, a withdrawal threat could lead to an internal GOP war over trade policy, which would be wonderful for the Democrats. This all puts the Democrats in a pretty good spot to make demands.”

Shortly after Friday’s signing, U.S. Trade Representative Robert Lighthizer insisted that the deal was negotiated with bipartisan support from both Democrats and Republicans, and expressed confidence it would survive the congressional approval process.

“I think we will get the support of a lot of Democrats, a very high number of Democrats, absolutely — I have no doubt about it,” Lighthizer said. A number of the their concerns will be addressed in the implementing legislation that will have to be brought forward for ratification, he added.

“I’m in discussions with a variety of Democratic leaders on those points and they will be very much involved in the process moving forward and will have a strong influence on how we put things together, because I want them not only to vote for it, I want them to be happy.”

James McCarten, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Ashcroft hospital emergency closed sign, 2016. Photo credit: Barbara Roden
Ashcroft Hospital emergency department closed this weekend

Closure due to unexpected limited physician availabiliy, says Interior Health

Residents line up outside the Vernon Recreation Complex for their COVID-19 vaccine Saturday, June 5. (Jennifer Smith - Morning Star)
No appointments necessary for first dose COVID-19 vaccine: Interior Health

People can just show up at clinics, register on the spot and get the shot

Heidi Roy of the Cariboo Jade Shop in Cache Creek with the 3,000 jade boulder, which is now on secure display inside the shop. (Photo credit: Barbara Roden)
Massive jade boulder returns to Cache Creek store six months after daring heist

The 3,000-pound boulder was stolen on Dec. 19, 2020 and found abandoned in the bush a week later

Dr. Albert de Villiers, chief medical health officer for the Interior Health Authority. (Contributed)
Child sex crimes charges against Interior’s top doc won’t impact pandemic response: Dix

Dr. Albert de Villiers is charged with sexual assault and sexual interference

At an outdoor drive-in convocation ceremony, Mount Royal University bestows an honorary Doctor of Laws on Blackfoot Elder and residential school survivor Clarence Wolfleg in Calgary on Tuesday, June 8, 2021. THE CANADIAN PRESS/Jeff McIntosh
‘You didn’t get the best of me’: Residential school survivor gets honorary doctorate

Clarence Wolfleg receives honorary doctorate from Mount Royal University, the highest honour the school gives out

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

The Great Ogopogo Bathtub Race has been held in Summerland as a fundraising event. Do you know which Canadian city introduced this sport? (Black Press file photo)
QUIZ: A summer’s day at the water

How much do you know about boats, lakes and water?

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

“65 years, I’ve carried the stories in my mind and live it every day,” says Jack Kruger. (Athena Bonneau)
‘Maybe this time they will listen’: Survivor shares stories from B.C. residential school

Jack Kruger, living in Syilx territory, wasn’t surprised by news of 215 children’s remains found on the grounds of the former Kamloops Indian Residential School

A logging truck carries its load down the Elaho Valley near in Squamish, B.C. in this file photo. THE CANADIAN PRESS/Chuck Stoody
Squamish Nation calls for old-growth logging moratorium in its territory

The nation says 44% of old-growth forests in its 6,900-square kilometre territory are protected while the rest remain at risk

Flowers and cards are left at a makeshift memorial at a monument outside the former Kamloops Indian Residential School to honour the 215 children whose remains are believed to have been discovered buried near the city in Kamloops, B.C., on Monday, May 31, 2021. THE CANADIAN PRESS/Darryl Dyck
‘Pick a Sunday:’ Indigenous leaders ask Catholics to stay home, push for apology

Indigenous leaders are calling on Catholics to stand in solidarity with residential school survivors by not attending church services

Most Read