Apr 27, 2017 - Politics & Policy

Trump, Trudeau and Peña Nieto agree not to terminate NAFTA

Pablo Martinez Monsivais, Evan Vucci / AP

Commerce Secretary Wilbur Ross told CNBC Thursday that it appears Canadian PM Justin Trudeau and Mexican President Enrique Peña Nieto are ready to start renegotiating NAFTA following their phone calls with President Trump Wednesday afternoon. Trump told reporters Thursday afternoon:

"I decided rather than terminating NAFTA, which would be a pretty big, you know, shock to the system, we will renegotiate. Now, if I'm unable to make a fair deal, if I'm unable to make a fair deal for the United States, meaning a fair deal for our workers and our companies, I will terminate NAFTA. But we're going to give renegotiation a good, strong shot."

On the Twitters: Earlier this morning, Trump tweeted "Relationships are good-deal very possible!"

Why this matters: Yesterday reports surfaced that the White House was considering an executive order declaring that the U.S. intends to withdraw from NAFTA. Trump has long said Mexico is "killing" the U.S. on trade, and his administration has been going head-to-head with Canada on their dairy and softwood lumber trade policies.

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