Washington: US President Donald Trump has said he would agree to a fair deal on the North American Free Trade Agreement (NAFTA), which is currently being renegotiated with Canada and Mexico, or there would be no deal at all.
In a statement issued yesterday, he said the US had been taken advantage of for many decades on trade. Those days are over, he added.
“This message was conveyed to Prime Minister of Canada: The United State will agree to a fair deal, or there will be no deal at all,” the US President said.
Earlier in the day, the Canadian Prime Minister accused US Vice President Mike Pence of the collapse of the NAFTA negotiations. Pence, according to him, demanded that any deal would automatically expire in five years.
“I had to highlight that there was no possibility of any Canadian prime minister signing a NAFTA deal that included a five-year sunset clause, and obviously the visit didn’t happen,” Trudeau said.
According to The Washington Post, the tension between the two countries is likely to intensify in the coming days. Trump, Trudeau and several other world leaders are scheduled to meet next week in Canada at a Group of Seven meeting, the daily said.
Describing the United States’ decision to impose metal tariffs on the European Union, Canada and Mexico as unfortunate, the International Monetary Fund (IMF) has urged countries to work constructively together to reduce barriers.
“Everybody loses in a protracted trade war. We encourage countries to work constructively together to reduce trade barriers and to resolve trade disagreements without resort to exceptional measures,” IMF Spokesperson Gerry Rice said yesterday.
He was responding to questions on the decision of the Trump Administration to impose a tariff on import of steel and aluminium from the European Union, Canada and Mexico.
“It is unfortunate that trade tensions are rising at a moment where the global recovery is being supported by trade. For the first time in a long time, trade is growing faster than global GDP, and spreading recovery around the world. Because of trade and innovation, billions of people today enjoy longer, healthier and more prosperous lives,” Rice said.
IMF Managing Director Christine Lagarde tweeted, “At the end of the day if #trade is massively disrupted if the level of trust among economic actors is severely damaged, those who will suffer most are the poorest people #G7.