NAFTA renegotiations to start soon: Trump

US President Donald Trump says he will soon start renegotiating the North American Free Trade Agreement, focusing on immigration and security.

Mexican President Enrique Pena Nieto and US President Donald Trump

Mexican President Enrique Pena Nieto and US President Donald Trump Source: AP

US President Donald Trump plans to talk soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement.

"We will be starting negotiations having to do with NAFTA," Trump said at a swearing-in ceremony for his top White House advisers.

"We are going to start renegotiating on NAFTA, on immigration and on security at the border."

Trump pledged during his presidential campaign that if elected he would renegotiate the NAFTA trade pact to provide more favourable terms to the US.

NAFTA, which took effect in 1994, and other trade deals became lightning rods for voter anger in the US industrial heartland states that swept Trump to power.

Trade experts, academics and government officials say Canada and Mexico will also seek tough concessions and that NAFTA's zero-tariff rate would be extremely difficult to alter.

Any renegotiation would likely take several years, they say.

Trump said he would meet Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto to begin work on overhauling the deal.

He praised Pena Nieto, who has faced low popularity in Mexico due to corruption scandals and rising inflation.

"The president has been really amazing," Trump said.

"I think we are going to have a very good result for Mexico, and the United States, and everybody involved."

Critics of Pena Nieto say he lacks a clear plan to counter Trump's calls to limit trade and deport illegal immigrants.

Trump has said little about what improvements he wants, apart from halting the migration of US factories and jobs to Mexico.

Since winning the November 8 election, Trump has singled out and threatened to impose tariffs on US companies that move any production to Mexico.

He has also intends to build a wall along the US southern border to deter illegal immigration and insisted that Mexico will pay for it.


Share
2 min read
Published 23 January 2017 8:14am
Updated 23 January 2017 10:43am
Source: AAP


Share this with family and friends