Canada, Mexico and The United States are all in agreement to modernize the 23 year old North American Free Trade Agreement
U.S. Commerce Secretary Ross recently stated the U.S. could start the formal NAFTA renegotiation with Canada and Mexico in just 90 days. The Trump Administration’s goal is to reduce U.S. trade deficit with Mexico through these negotiations, not to completely pull out of NAFTA which has just been a threat at this point if negotiations don’t go well. Likely, the formal discussion will begin in June or early July.
On March 10, 2017, Reuters reports,
“Trade between the United States, Canada and Mexico has nearly quadrupled in goods since NAFTA took effect in 1994 to $1.1 trillion last year, according to U.S. Census Bureau data. The deal has accelerated the integration of the three economies, with parts supply chains and commodities now crisscrossing their borders.
The 90-day period is required under the so-called “fast track” negotiating authority granted to the president by Congress. Fast-track allows only an up-or-down vote on trade deals, in order to streamline their approval and strengthen the U.S. negotiating hand with partner countries.
Congress granted fast-track to former President Barack Obama in 2015 when his administration was negotiating the now-defunct 12-country Trans-Pacific Partnership trade deal. Unless rescinded by lawmakers, the fast-track authority is scheduled to remain in effect until July 2021.”
A very informative article released by the Canadian Press talks about the steps it takes to change the North American Trade Agreement starting with the 90-day consultation phase which allows the Administration to gather facts, opinions and pressing points from the public and private sectors of the United States to bring to the negotiating table.