U.S. President Donald Trump says renegotiating NAFTA is ''very possible,'' but he threatened to scrap the pact if Canada, Mexico, and the U.S. fail to reach a ''fair deal for all.'' Fred Katayama reports.
Instead of killing NAFTA, President Donald Trump told Mexican President Enrique Pena Nieto and Canadian Prime Minister Justin Trudeau that he wants to renegotiate the trade pact. He wrote in a tweet: "I received calls from the President of Mexico and the Prime Minister of Canada asking to renegotiate NAFTA rather than terminate. I agreed ... subject to the fact that if we do not reach a fair deal for all, we will then terminate NAFTA. Relationships are good-deal very possible!" In Mexico City, representatives of Pena Nieto said the call focused exclusively on talks over NAFTA's "renegotiation and modernization." In Ottawa, a Canadian source told Reuters, Trudeau urged Trump not to withdraw from NAFTA, saying such action would be counterproductive. The calls came in response to news that Trump had been considering an executive order to withdraw the United States from the pact. Tom Siomades of the Investment Consulting Group of Hartford Funds: (SOUNDBITE) (English) TOM SIOMADES, MANAGING DIRECTOR, INVESTMENT CONSULTING GROUP OF HARTFORD FUNDS, SAYING: "I think what you have, as he found out more about what was involved in NAFTA, I mean that wasn't negotiated overnight. I think there was a lot of good points as well as weak points. And I think they're finding out that you just can't disengage just the same way as we have a desire to get out of healthcare, we found out that there was a lot of things that people like there too. So, it's complicated. It's often easy to say something is good or bad, and then you start looking at the details, you find out that the good things need to stay and I think that's where NAFTA is right now." NAFTA erased most tariffs between the three neighbors after it was signed 23 years ago. But Trump has accused Mexico of exploiting it to lure away American jobs. He has also complained about Canadian trade practices. His administration has imposed tariffs on imported Canadian lumber that is mostly used to build American homes.