1. On Saturday, President Trump announced his intention to withdraw the United States from the North American Free Trade Agreement. Specifically, he said, “I will be formally terminating Nafta shortly… It’s been a disaster for the United States. It’s caused us tremendous amounts of unemployment and loss and company loss and everything else.”
2. This move is “intended to force House Democrats to enact a revised version of the pact despite concerns that it fails to protect American workers.”
3. If Trump follows through on withdrawing from NAFTA, congress will have six months to pass the revised NAFTA, which Trump calls the United States-Mexico-Canada Agreement. If no deal can be reached, both versions of the deal — the current NAFTA and United States-Mexico-Canada Agreement — would be void.
4. Trump added that he would veto any bill that does not include $5 billion for a southern border wall between the U.S. and Mexico. He then continued to say that he would be fine with having no NAFTA deal if he does not like any of the Democrats revisions. Having no trade agreement would “result in far more restrictive trade that could have a severe impact on industry and agriculture in all three nations.”
5. Overall, Trump, in withdrawing from the current NAFTA deal, is leaving congress with two options: “approve the United States-Mexico-Canada Agreement, or risk having no trade deal in place.”
Sources: https://www.nytimes.com/2018/12/02/us/politics/trump-withdraw-nafta.html / https://www.cnn.com/2018/12/02/politics/trump-terminate-nafta/index.html