President Donald Trump told a crowd in Arizona earlier this week regarding the North American Free Trade Agreement talks that “I don’t think we can make a deal,” putting billions of dollars of agricultural exports in jeopardy.
However, Reuters says Mexico and Canada dismissed Trump’s threat, describing it as a negotiating tactic designed to gain an advantage during the negotiation effort.Trump said he believes the U.S. will “end up probably terminating NAFTA at some point.” It’s not the first time the President has threatened to withdraw from NAFTA.
In April, Agriculture Secretary Sonny Perdue is said to have persuaded the President to renegotiate, rather than terminate the agreement, by emphasizing the importance NAFTA has for agriculture exports. Agriculture groups have coined the phrase “do no harm” when it comes to agricultural trade in the free trade agreement negotiations.
Major farm groups are reluctant or declining to comment on President Trump’s latest threat to withdraw from NAFTA, altogether. But former Department of Agriculture trade advisor in the Bill Clinton Administration, Paul Drazek has this…
Drazek says President Trump’s intent to pull out of NAFTA if talks fail would be “catastrophic” for all three countries’ economies, especially in agriculture, where trade has grown exponentially. He says the threat of a pull-out is a big ‘gamble’ by the president