President Trump’s plans to withdraw from North American Free Trade Area have been taking the rounds of the media lately. In the latest development he has announced that he will not be terminating the NAFTA agreement at this time.
A few days ago President’s caustic remarks on trade with Canada caused the impression that he might be moving towards fulfilling what he said as part of his election campaign. NAFTA is a piece of regulation implemented January 1, 1994 simultaneously in Mexico, Canada and the United States that eliminates most tariffs on trade between these nations.
The purpose of this agreement is to encourage economic activity between these economic powers.
Withdrawal from this agreement could spell disaster for trading and economic conditions for the entities involved and that has caused the international parties to turn to President Trump to stop from terminating the agreement. CNN reported White House as saying in a description of President Trump’s call to Canadian Prime Minister Justin Trudeau that “President Trump has agreed not to terminate NAFTA and the leaders have agreed to proceed swiftly according to their required internal procedures, to enable the renegotiation of the NAFTA deal to benefit of all three countries.”
Later US President also tweeted “I received calls from the President of Mexico and the Prime Minister of Canada asking to renegotiate NAFTA rather than terminate. I agreed..”