The President congratulated his Canadian and Mexican counterparts for “proceeding quickly” and is adamant the deal will allow all three countries to be “stronger and better”.
A White House statement said: “President Trump agreed not to terminate NAFTA at this time and the leaders agreed to proceed swiftly, according to their required internal procedures, to enable the renegotiation of the NAFTA deal to the benefit of all three countries.”
Trump said in a statement: “It is my privilege to bring NAFTA up to date through renegotiation.
“It is an honour to deal with both President Enrique Peña Nieto and Prime Minister Trudeau, and I believe that the end result will make all three countries stronger and better.”
Carlos Serrano, chief economist at BBVA Bancomer in Mexico City, said: “Trump’s bluff didn’t come off.”
The initial reports that Trump was considering a removal of the trade agreement brought a horrified reaction from a number of top Republicans.
Senator Ben Sasse, said: “Scrapping NAFTA would be a disastrously bad idea. It would hurt American families at the checkout, and it would cripple American producers in the field and the office.”
Trump Cries Wolf Again
These negotiations could take a year, or longer. The only thing Trump achieved with his sudden reversal was getting a horrified reaction from Congress while setting himself to be labeled “the boy who cried wolf”.
Mike “Mish” Shedlock