The United
States, Mexico and Canada are likely to reach a basic accord over
reworking the North American Free Trade Agreement (NAFTA) by the middle
of next year, the head of the biggest U.S. business lobby group said on Sunday.
The
future of the deal binding the three nations has been in doubt since
Donald Trump won the U.S. presidency in November pledging to ditch it if
he could not rework terms in favor of the United States, clouding the
outlook for Mexico in particular.
However, Thomas Donohue, president and chief executive officer of the U.S. Chamber of Commerce, said that he believed business leaders and policymakers were increasingly aware of the need to get a new deal and move on without disrupting business.
Trump contends that Mexico's growth as a manufacturing power since NAFTA took effect in 1994 has cost jobs in the United States. However, defenders of the deal say it has benefited all three nations and helped American firms compete globally.
The U.S. government has yet to send a letter telling Congress that it intends to launch NAFTA negotiations in 90 days - the notification period required under the fast-track process - so the potential start of talks is now drifting into August.
Donohue said that step should follow in the next few weeks, adding neither Trump nor U.S. firms had an interest in dragging out the NAFTA talks because of the economic damage it would do.
During his own campaign, Trump threatened to slap hefty tariffs on Mexican-made goods, including a 35 percent tax on cars, and he caused dismay in Mexico with a pledge to build a southern border wall to keep out illegal immigrants.
Since taking office, Trump's tone has softened, though he again railed against NAFTA over the past week and returned to the issue of the wall, saying Mexico would pay for it "eventually."
Nevertheless, Donohue said understanding was growing over the need for a deal that would accelerate, not reduce trade, and argued the prospect of punitive tariffs was receding.
However, Thomas Donohue, president and chief executive officer of the U.S. Chamber of Commerce, said that he believed business leaders and policymakers were increasingly aware of the need to get a new deal and move on without disrupting business.
Trump contends that Mexico's growth as a manufacturing power since NAFTA took effect in 1994 has cost jobs in the United States. However, defenders of the deal say it has benefited all three nations and helped American firms compete globally.
The U.S. government has yet to send a letter telling Congress that it intends to launch NAFTA negotiations in 90 days - the notification period required under the fast-track process - so the potential start of talks is now drifting into August.
Donohue said that step should follow in the next few weeks, adding neither Trump nor U.S. firms had an interest in dragging out the NAFTA talks because of the economic damage it would do.
During his own campaign, Trump threatened to slap hefty tariffs on Mexican-made goods, including a 35 percent tax on cars, and he caused dismay in Mexico with a pledge to build a southern border wall to keep out illegal immigrants.
Since taking office, Trump's tone has softened, though he again railed against NAFTA over the past week and returned to the issue of the wall, saying Mexico would pay for it "eventually."
Nevertheless, Donohue said understanding was growing over the need for a deal that would accelerate, not reduce trade, and argued the prospect of punitive tariffs was receding.
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