trade agreements

President Trump’s new threat to terminate NAFTA, made during a rally in Phoenix, is a negotiating tactic rather than a serious possibility, said Canadian and Mexican officials. “This was always a card we knew the president would likely play . . . it may have been a bit earlier than expected,” a Canadian official told Reuters.

President Trump told a rally in Phoenix that he may have to kill NAFTA in order to get better trade terms with Canada and Mexico. “Personally, I don’t think we can make a deal,” he said, days after the first round of negotiations for the new NAFTA. “I think we’ll end up probably terminating NAFTA at some point.”

Gregg Doud, the head of the Commodity Markets Council for the past four years, is President Trump’s choice to become chief agricultural negotiator in the U.S. trade representative’s office, announced the White House.

The Trump administration is mulling a draft executive order to pull the U.S. out of NAFTA, says a senior White House official, according to Reuters. NAFTA renegotiations were expected to start in August, but a withdrawal by the U.S. could rush the timeline.

Traders and industry analysts say campaign promises by President-elect Donald Trump to renegotiate the North American Free Trade Agreement have spooked the cross-border grain trade as well as driving down the value of the peso, said Reuters.

In the first decision under the new North America trade pact, a three-judge dispute settlement panel ruled that Canada had manipulated its tariff-rate quotas to limit imports of U.S. dairy products, despite agreeing to greater U.S. access in the 2020 agreement. Agriculture Secretary Tom Vilsack said the ruling was a signal of U.S. resolve against unjustified trade restrictions anywhere.