White House Economic Advisor Larry Kudlow says it’s Trump’s “preference” to “negotiate with Mexico and Canada separately.”
Rather than work on NAFTA with all three countries, it appears US President Donald Trump would rather cut separate trade deals with Canada and Mexico.
That’s according to Trump’s economic advisor Larry Kudlow.
Said Kudlow, “Yesterday we met with the president a couple times and he is very seriously contemplating kind of a shift in NAFTA negotiations. His preference now, and he asked me to convey this, is to actually negotiate with Mexico and Canada separately.”
Here’s a video of Kudlow’s remarks”
.@larry_kudlow: President Trump is very seriously contemplating a shift in NAFTA negotiations, moving towards bilateral talks pic.twitter.com/ak1t3V6WmE
— FOX & friends (@foxandfriends) June 5, 2018
Separate trade deals would have a certain logic to it. The economies of Canada and the US are far more similar in terms of labour laws, environmental laws, and overall wealth level than either country is compared to Mexico.
Additionally, Canada and the US have balanced trade, whereas the US has a large deficit with Mexico. Mexico’s ability to undercut the wages of Canadian and American workers has caused damage to the auto industry – particularly in Canada, and working people could benefit from a deal that focuses on the strengths of the Canadian and US economy, while the US can address their trade deficit with Mexico separately.
Of course, to truly benefit from any deal – whether a bilateral agreement or a renegotiated NAFTA – Canada will need to lower taxes, scrap the carbon tax, and remove the burden of regulations that Justin Trudeau has so dangerously expanded. Otherwise, no matter what deal is ultimately made, Canada will be pushing investment out of our country, and Canadians will pay the price in lost prosperity.
Photo – YouTube