WASHINGTON — Claiming it wants to negotiate a “much better deal for all Americans,” the Trump administration on Monday revealed its most detailed list of objectives to date for an overhaul of the North American Free Trade Agreement with Mexico
WASHINGTON — Claiming it wants to negotiate a “much better deal for all Americans,” the Trump administration on Monday revealed its most detailed list of objectives to date for an overhaul of the North American Free Trade Agreement with Mexico and Canada.
The U.S. Trade Representative said a revamped NAFTA must include provisions to eliminate unfair subsidies and give the United States broader authority to crack down on an influx of cheap products.
Trade is a centerpiece of President Donald Trump’s economic agenda, and the renegotiation of NAFTA has been a pillar of his promise to revive U.S. manufacturing. “Too many Americans have been hurt by closed factories, exported jobs and broken political promises,” said Robert Lighthizer, Trump’s trade representative.
The 17-page document the administration sent to Congress echoes Trump’s tough talk on trade by making the reduction of the U.S. trade deficit with its neighbors its top priority. However, it also builds off the Trans-Pacific Partnership trade deal that Trump abandoned when he took office, borrowing concepts about labor regulations and the environment.
“It is very consistent with the president’s stance on liking trade barriers, liking protectionism,” Chad Bown, a senior fellow at the Peterson Institute for International Economics, said of the report. “This makes NAFTA in many respects less of a free-trade agreement.”
Some of the Trump administration’s objectives appear to send a signal to countries beyond Canada and Mexico. The report delves into concerns about subsidized state-owned enterprises and currency manipulation that are more applicable to countries such as China than they are to the United States’ neighbors. The Trump administration, which prefers bilateral deals over sprawling multicountry trade agreements, has said that a new NAFTA will most likely serve as a template for its pacts with other countries.
The publication of the objectives begins a 30-day period before formal talks among the United States, Canada and Mexico can officially begin. Wilbur Ross, the secretary of commerce, said last month that he hopes a new deal is reached by January. Congress must approve any major changes to NAFTA that Trump decides to make.
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