President Donald Trump is strongly suspected to renegotiate the terms of NAFTA a free trade agreement between the U.S, Mexico, and Canada, and will sign an executive order to get the renegotiations in motion.
The free trade deal has been strongly criticised for allowing companies to move jobs out of America. Its supporters, however, claim it provides millions of jobs in the U.S.
Earlier on Monday, President Trump signed an executive order withdrawing from the Trans-Pacific Partnership (TPP) trade deal. The deal which includes 11 Pacific Rim countries has been described by Trump as a disaster. It was one of his campaign pledges to scrap the deal.
Meetings with Canada and Mexico
On Sunday, it was revealed that meetings with Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto had been arranged.
The meetings will discuss trade with both heads of state, but will also discuss security and immigration with Mexico. In another campaign pledge he said he will build a wall across the Mexican border and make Mexico pay for it.
The NAFTA agreement was drafted by previous Republican President George H W Bush and signed by President Bill Clinton in 1994. It allows multinationals to build anything they want in any of the three countries.
When campaigning he described NAFTA as “the worst trade deal maybe ever signed anywhere, but certainly ever signed in this country”.
NAFTA supporters admit that the trade deal needs work. Many would like to include elements of the soon to be defunct TPP agreement such as movement of electronic business data and other digital trade elements.
The National Associations of Manufacturers calls NAFTA “a boost to US competitiveness”.
Tom Donohue, president of US Chamber of Commerce, was also quick to criticise Donald Trump over wanting to scrap the deal. In an interview with Fox News, he said, “You want to get rid of Nafta? Nafta is 14 million jobs in the United States.”
Mr Trump is determined to renegotiate NAFTA and possibly scrap it.