Canada says it takes Trump's talk of NAFTA withdrawal seriously

Trump plans to withdraw US from NAFTA

Trump plans to withdraw US from NAFTA

US President Donald Trump says he will shortly be providing formal notice to Congress that he will terminate the North American Free Trade Agreement (Nafta), giving lawmakers six months to approve the replacement he recently signed.

"I will be formally terminating NAFTA shortly", Trump told reporters aboard Air Force One en route from the Group of Twenty (G20) summit in Argentina, according to a White House press release.

The leaders of Canada, Mexico and the US signed a revised North American free trade pact Friday on the margins of the G20 summit in Argentina that is set to govern more than $1.2 trillion in regional commerce.

Canada's pressure to include "soft things" like labour standards in the new North American free-trade treaty will help secure critical support for the deal from Democrats in the United States Congress, the Canadian ambassador to the us says.

A number of Democrats in Congress, empowered by their new majority in the House of Representatives, say they don't like the new agreement in its current form, warning it will require more stringent enforcement mechanisms for new labour rules and protections for the environment in order to win their support. The U.S. does about a $1 trillion worth of business each year with the two countries, and Canada (second) and Mexico (third) are America's most significant trade partners. The move seems to be aimed at the new Democratic House, which will take over next year - and may not approve the USMCA. "It's NAFTA 2.0", Warren told a luncheon audience last week during a foreign policy speech in Washington.

"For these reasons, I oppose NAFTA 2.0, and will vote against it in the Senate unless President Trump reopens the agreement and produces a better deal for America's working families".

He had made renegotiating NAFTA a key campaign promise. "I commend President Trump and our US Trade Representative, Ambassador Lighthizer, for their perseverance, leadership and hard work".

"The ceremonies, the signing - the president's very happy with all of that".

Like Trump, Democrats from industrial areas in the Midwest have traditionally opposed NAFTA and have now gained more influence in Congress and with Trump's help, for the first time in more than 25 years actually are in a position to kill the trade pact that has always been opposed by American trade unions, such as the United Auto Workers.

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