Investing.com – The USA and Canada might scrap NAFTA, and draft their own trade agreement without Mexico.
Economists largely agree that NAFTA has been beneficial to the North American economy, as trade between Canada, Mexico, and the United States has jumped roughly from $290 billion in 1993, before the treaty went into effect, to more than $1.1 trillion in 2016. President Trump, however wants to take steps to reduce the US trade deficit and has threatened to abandon NAFTA if his proposals aren’t accepted.
If that happens, Canadian officials might be willing to consider a two-way pact. After all, Canada used to have a bilateral trade deal with the USA that got suspended when NAFTA was implemented.
Speaking from China, with whom he was also hoping to work out a trade deal, Canadian Prime Minister Justin Trudeau said that although he thinks canceling NAFTA would turn the clock back on really important measures, “the new administration has shown a willingness to disrupt the patterns of past behavior and look for new models, and we’re willing to entertain next steps forward.”
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Source: Investing.com
