Washington: US President Donald Trump today said he is willing to consider lifting his proposed tariffs on import of steel and aluminium if there is a "new and fair" NAFTA agreement.
The North American Free Trade Agreement is an deal signed by Canada, Mexico, and the US, creating a trilateral trade bloc in North America. Trump is scheduled to sign an executive order that would impose a 25 per cent tariff on import of steel and another 10 per cent on aluminium.
His announcements, last week, drew a sharp reaction from America’s major trading partners, including the EU and Canada. The new import duty on China is said to be aimed at Chinese steel, which is quite often dumped in the US market.
“We have large trade deficits with Mexico and Canada. NAFTA, which is under renegotiation right now, has been a bad deal for the US' massive relocation of companies and jobs. Tariffs on steel and aluminium will only come off if new & fair NAFTA agreement is signed,” Trump said.
Currently the US, Canada and Mexico are renegotiating the NAFTA agreement which Trump had earlier deemed to be unfair for the US.
The three NAFTA partners — Canada, Mexico and the US — have been locked in talks aimed at possibly revamping the trade deal, but no clear framework has so far emerged. The latest round of negotiations is expected to wrap up soon in Mexico City.
Trump didn't specify whether the potential tariff rollback would be applied only to Mexico and Canada. In a series of tweets, the president linked the tariffs to issues with Canada and Mexico. Trump said Canada must treat American farmers much better.
“Highly restrictive. Mexico must do much more on stopping drugs from pouring into the US. They have not done what needs to be done. Millions of people addicted and dying,” Trump alleged.
Trump has threatened to withdraw NAFTA pact since the 2016 campaign, saying the 24-year-old deal allowed manufacturers to relocate to Mexico and take advantage of cheaper labour, The Washington Post reported.
Even a number of Democrats have said NAFTA should be reworked, but Canada and Mexico have resisted Trump’s strong-arm tactics, it said. PTI
