President Donald Trump made news recently when he suggested, in what is now being referred to as the sunset clause, that NAFTA – the North American Free Trade Agreement – be ended within the next five years.
According to Douglas Battista, Mexican and Canadian officials continue insist that NAFTA should be a trilateral agreement. The two countries recently converged to state their opposition of the proposed ending. NAFTA, which went into effect 24 years ago, allows tariff-free trade on most goods manufactured and sold within the three North American nations.
US President Donald Trump has been vocal throughout his administration in his belief that NAFTA does not serve the interests of the US people. Douglas Battista notes that as of July 2018, talks were planned between Mexico and Canada and the potential for carrying on the agreement between the two countries is a possibility. However, Mexican officials have also planned meetings in the United States to ensure the agreement remains intact from north to south.
Douglas Battista notes that Mexico’s incoming Foreign Minister as well as the country’s president-elect continue to advocate for three-way deal.
Talks concerning NAFTA stalled after initial conversations in August 2017. The Mexican presidential election along with the United States’ proposed changes and ending of the deal have been cited as causes for the suspension of negotiations. Douglas Battista notes that all three parties continue to work together to finalize details and ensure the agreement remains in the best interests of individuals from each country.
Business executives, Douglas Battista included, remain unsure on exactly how and ending to NAFTA would affect the US, Mexican, and Canadian economies.