Out with the old: Trump to kill old NAFTA to push Congress to approve USMCA

Trump, Prime Minister Justin Trudeau and former Mexican president Enrique Pena Nieto signed the new U.S.-Canada-Mexico Agreement

President Donald Trump, center, reaches out to Mexico’s President Enrique Pena Nieto, left, and Canada’s Prime Minister Justin Trudeau as they prepare to sign a new United States-Mexico-Canada Agreement that is replacing the NAFTA trade deal, during a ceremony at a hotel before the start of the G20 summit in Buenos Aires, Argentina, Friday, Nov. 30, 2018. The USMCA, as Trump refers to it, must still be approved by lawmakers in all three countries. (AP Photo/Martin Mejia)

The original NAFTA deal is back on top of Donald Trump’s hit list, with the U.S. president declaring he intends to terminate the 24-year-old trade pact — a move designed to pressure lawmakers on Capitol Hill to approve its recently negotiated successor.

Trump, Prime Minister Justin Trudeau and former Mexican president Enrique Pena Nieto signed the new U.S.-Canada-Mexico Agreement — USMCA, although the federal government in Ottawa has rechristened it CUSMA — during an awkward ceremony at the outset of G20 meetings Friday in Argentina.

Trump was on board Air Force One on his way back to Washington late Saturday when he announced that he would notify Congress of his intention to terminate NAFTA, a long-threatened move that would give lawmakers six months to approve its replacement once formal notice is delivered.

“I will be formally terminating NAFTA shortly,” the president said. “Congress will have a choice of the USMCA or pre-NAFTA, which worked very well. You got out, you negotiate your deals. It worked very well.”

A number of Democrats in Congress, empowered by their new majority in the House of Representatives, say they don’t like the new agreement in its current form, warning it will require more stringent enforcement mechanisms for new labour rules and protections for the environment in order to win their support.

Massachusetts Democrat Elizabeth Warren, a member of the Senate Armed Services Committee and one of more than a dozen names believed to be eyeing a presidential run in 2020, has added her name to the list of lawmakers who say they won’t support the new agreement in its current form.

“As it’s currently written, Trump’s deal won’t stop the serious and ongoing harm NAFTA causes for American workers. It won’t stop outsourcing, it won’t raise wages, and it won’t create jobs. It’s NAFTA 2.0,” Warren told a luncheon audience last week during a foreign policy speech in Washington.

She cited a lack of enforcement tools for labour standards, drug company “handouts” and a lack of sufficiently robust measures to cut pollution or combat climate change, particularly in Mexico.

“For these reasons, I oppose NAFTA 2.0, and will vote against it in the Senate unless President Trump reopens the agreement and produces a better deal for America’s working families.”

Some Republicans see problems, too: Florida Sen. Marco Rubio tweeted his fears that the current agreement gives agricultural producers in Mexico an unfair advantage.

“As currently drafted this deal will put Florida seasonal vegetable growers out of business,” Rubio wrote. “It allows Mexico to dump government-subsidized produce on the U.S. market.

“Going forward America will depend on Mexico for our winter vegetables. Unacceptable.”

Trade experts have long suspected Trump, who has made beating up on NAFTA a central feature of his political career, might play the termination card in an effort to light a fire under the deal’s critics.

In a blog entry posted shortly after the agreement was signed Friday, Cato Institute trade analyst Simon Lester appeared to anticipate Trump’s move — although he acknowledged it would have made a lot more sense if the Republicans still had control of Congress.

“The Democrats are in a different position,” Lester wrote.

“Many of them don’t like NAFTA to begin with, so a withdrawal threat wouldn’t feel so threatening. Furthermore, a withdrawal threat could lead to an internal GOP war over trade policy, which would be wonderful for the Democrats. This all puts the Democrats in a pretty good spot to make demands.”

Shortly after Friday’s signing, U.S. Trade Representative Robert Lighthizer insisted that the deal was negotiated with bipartisan support from both Democrats and Republicans, and expressed confidence it would survive the congressional approval process.

“I think we will get the support of a lot of Democrats, a very high number of Democrats, absolutely — I have no doubt about it,” Lighthizer said. A number of the their concerns will be addressed in the implementing legislation that will have to be brought forward for ratification, he added.

“I’m in discussions with a variety of Democratic leaders on those points and they will be very much involved in the process moving forward and will have a strong influence on how we put things together, because I want them not only to vote for it, I want them to be happy.”

James McCarten, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Sites are being considered for a new pipe that will see treated effluent from the Joint Utilities Board’s sewage treatment plant near Duncan diverted away from the Cowichan River and Cowichan estuary (pictured) to an outflow site in Satellite Channel. (File photo)
Possible routes identified for new Cowichan sewage pipe

Public input will be sought in decision

Sierra Robinson, 17, is one of 15 youths suing the Canadian government for failing to take action on climate change. (Facebook)
Judge rejects 15 youths’ climate change lawsuit against Canadian government

Justice Michael Manson has granted the government’s motion to strike the plaintiffs’ claim

RCMP. (Phil McLachlan - Black Press Media)
Duncan B&E suspect caught in the act by RCMP

37-year-old Parksville man facing several charges

The road into Crofton will be a lot nicer when the roller coaster bumps are taken out of Crofton Road. (Photo by Don Bodger)
Crofton Road improvements to start taking shape Nov. 2

It’ll be a long haul until next summer to get it done and motorists should expect delays

Provincial health officer Dr. Bonnie Henry arrives for briefing on the COVID-19 situation, B.C. legislature, Oct. 26, 2020 (B.C. government)
B.C. records 217 more COVID-19 cases, mask use urged

Infection spike continues, 21 senior facilities affected

An elderly woman wearing a face mask to curb the spread of COVID-19 walks past an advertisement for a television series in Vancouver, B.C., Sunday, Aug. 30, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C. has been under a COVID-19 state of emergency for more than half the year

Province has been under a state of emergency for 32 weeks – and counting

Los Angeles Dodgers celebrate after defeating the Tampa Bay Rays 3-1 to win the baseball World Series in Game 6 Tuesday, Oct. 27, 2020, in Arlington, Texas. (AP Photo/David J. Phillip)
L.A. Dodgers beat Rays 3-1 to win 1st World Series title since 1988

National League champs claim crown in six games

Seven-year-old Aaliyah Rosa was found dead in an apartment in Langley in July. (Langley Advance Times files)
Child’s body cold, no pulse: Off-duty cop testifies in Langley mother’s murder trial

The seven-year-old girl’s mother faces a first-degree murder charge

A picture of John taken at Children’s Hospital Vancouver last week. Photo courtesy, Alicia Sewid.
RCMP investigating after young boy run over by SUV in Campbell River parking lot

The seven-year-old has multiple injuries including a broken pelvis and was admitted to Children’s Hospital in Vancouver

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

A video message from Mrime Minister Justin Trudeau was streamed to attendees at the State of the Island Economic Summit on Tuesday morning. (Vancouver Island Economic Alliance image)
Prime minister greets Vancouver Island economic summit attendees

Vancouver Island Economic Alliance conference being held virtually this week

A woman walks through check in at WestJet at Pearson International airport during the COVID-19 pandemic in Toronto on Wednesday, Oct. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Strong support for pre-flight COVID testing ahead of upcoming WestJet trial: YVR

Airport is partnering with UBC, which is helping choose the method of pre-flight testing

Prime Minister Justin Trudeau provides an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau says pandemic ‘really sucks,’ and that Christmas gatherings are up in the air

The prime minister encouraged residents to continue to follow the advice of local health authorities

Most Read