One cornerstone promise of President Donald Trump’s candidacy was to abolish or modernize the North American Free Trade Agreement, or NAFTA. The U.S., Canada and Mexico all tend to agree the time has come to update the agreement that’s been law since 1993.
Thus far, however, talks and discussions haven’t produced much of anything, and analysts have begun to envision scenarios where NAFTA goes away entirely. The scenarios don’t seem completely unlikely at this point after a few failed rounds of negotiations. Automotive News reported last Saturday that if President Trump were to signal the country’s intent to leave the trade agreement, he’d need to give six months’ notice.
Following the notice, a couple of things would likely occur. Foremost, automakers would likely sue the U.S. government to keep NAFTA in place. Automakers would also turn to Congress to pressure a solution since NAFTA was ratified in the U.S. after congressional approval.
“You can have
 this weird situation
 where Trump makes
 his analysis on 
NAFTA, but behind the scenes there’s paralysis,” said Christopher Sands, director of the Johns Hopkins Center for Canadian Studies in Washington, D.C. Many analysts agree the U.S. leaving would make for a messy situation.
The U.S. departure would also likely birth new bilateral trade agreements with both Canada and Mexico, though they’d likely remain less ideal. A number of bilateral agreements wouldn’t sync like NAFTA currently does because rules don’t match up perfectly.
The last round of negotiations ended on December 15, 2017, and produced zero results. NAFTA negotiators from each nation will resume talks in Montreal on January 23.
Comments
I do not expect this to die but I do see terms being renegotiated.
Leave NAFTA Let the blood suckers fend for themselves.
While the bottom line is this is a very complex issue, by yanking this, high odds more and more GM cars will be built in China and import to the states…
This has already happened twice, Caddy CT6 PHEV and the Buick Envision, the reason they do it is they expect both models to sell in greater volumes in China…Now building cars in China and importing them over may have been inevitable regardless of the NAFTA status so all we can do is speculate but it would appear no-NAFTA while could save some money won’t necessarily bring those jobs back to the states…
Exactly
This will just speed up the move of the US to be a 3rd world country.
chicken little, is that you?
Actually, many parts of the US including the mid-West are referred by some as parts of 4th world countries. These are areas where there are no services and complete breakdown of society is the norm. These are often the centres of the opioid crisis where more than 70,000 Americans have died in 2017. These are people who have completely given up on life. Far worse than most 3rd world countries. To put that into perspective, this represents more people dying in Vietnam, Irak and Afghanistan combined, in a single year.
Remove NAFTA and watch this increase exponentially.
Chris, do you live in the United States? Where do you get this junk?
Seriously, show me links to where parts of the midwest US are called “fourth world” areas, and just who is it that says so.
Where in the midwest US has the complete breakdown of society occurred? You know, where there are no services at all? Please point out the good-old midwest centers of opioid crisis, where people have given up on life, etc.
To top your grand tour off, please tell me, in English if you can, just how this relates to NAFTA in any way, shape or form.
You comment is just patently absurd.
NAFA isn’t perfect but businesses have literally popped up designed around the pact. North America should be moving closer together, integrating the three economies.
The three settler nations should be integrating economically with similar standards to better take on China and Europe. This is especially important as we loose much of Asia and Oceania to China.
You’re absolutely right. Killing NAFTA is equivalent to handing over the keys to China.
Not getting into the politics, just sharing what’s reported in the news…
https://www.usatoday.com/story/money/cars/2017/06/20/trump-officials-greet-fords-plan-import-chinese-cars/103049064/
After barking at Ford at the idea of having them built in Mexico the article states: “Trump officials greet Ford’s plan to import Chinese cars”
Trump and his family profit enormously from China. Since he became president, Trump Inc was awarded multiple patents, Ivanka’s products are ALL made there, many of his building supplies come from there and all of the Trump products including the goofy hats are proudly made in Chinese factories.
Wow, whole lot of unsubstantiated stuff in this post; got any reputable corroboration for all of that?
Read the Atlantic Magazine article “Making China Great Again” if you wish to learn more about Trump’s business relationship with China, his use of sweat shops, and Ivanka’s patents.
You must be one of those low info voters it seems.
Steve–https://www.theatlantic.com/magazine/archive/2016/11/the-case-for-hillary-clinton-and-against-donald-trump/501161/
Sure, I’m going to read their fake news. You are just part of the social psychosis of the left.
Dugas–Lay off the Fox News Kool Aid.
Folks like Hannity have filled your mind with retro Cold War/Proto Fascist propoganda & your a sucker for a wannabe authoritarian strongman like Trump.
We on the Left are trying to build a more fair, just society. My grandparents generation would have been horrified by a mere 2% hoarding a majority of our once great nation.
Do you think Eisenhower would be on my team or Your? Hint: He whacked industrialists with a 90% tax rate.
Do yourself a favor and read a book, self-educate, stop worshiping Trump and Putin.
Steve– Idiotenspielen, truly idiotenspielen.
Dugas—Why don’t you go to a store to see Ivanka’s junk and read the labels. But you won’t because you much prefer to continue to believe your B.S.
Randle–Exactly what I thought: you’ve got nothing to back up your nonsense. Fake news.
USA Today!
Got any reputable sources to substantiate that instead?
NAFTA is more about proping up buisness along the boarders of our counties to prevent hostels from taking over. The last thing we need is Mexico going the way Venezuela has.
Canada is more a supporting partner to help protect this part of the world.
Besides if the have someplace decent to work in Mexico the will have less reason to leave.
But with all the corruption over there it is not working well at all.
As for China. You have a choice you either pay more to get them built here or you pay less and import them from there.
The problem is you can’t pay people six figures here to build cars and expect to sell them cheap here. Yes people with some time in and some overtime can easily clear. Six figures. You should see them cry when they get laid off.
The bottom line is cheap cars are going to be imported. Car will also be imported and built from the country that is the primary market. Cars like the CT6 PHEV in big numbers in a China but very small numbers here. It would be a poor buisness choice to build them here and export 90% of them.
The others are doing the same. The Honda Civic R is built in England not Japan. There are many others too. It will change too based on the value of exchange too.
Sorry we need to learn to be competitive again here as others who will do it as well and cheaper will take the jobs.
Like H Ross Perot said. No American Factories Taking Applications.
More FEAR-Mongering by the Globullists- Like tax bill Armageddon , snow will cease to exist, children will DIE with repeal of Obuttcare(yet they are pro-abortion)