U.S. Trade Representative Robert Lighthizer reportedly spoke Sunday with Canadian Foreign Minister Chrystia Freeland after Navarro’s comments as well as is usually required to meet with her while she is usually in Washington This specific week, according to The Wall Street Journal.
“If [Trump] thought putting tariffs on Mexico as well as Canada would likely give him leverage, the idea backfired,” Leblond said. Trump’s posture toward Trudeau has not helped, he said.
“Even if he threatens to withdraw [via NAFTA] or invokes article 2205 as well as notifies in which he intends to leave, I think both Canada as well as Mexico would likely say, ‘Go ahead, try your luck,'” Leblond said, referring to a provision inside the NAFTA agreement. “We’ll see how the U.S. political system works as well as what happens, whether you’ll be able to do in which.”
“Certainly via the Canada side, we’re bracing for a fight. the idea’s pure bullying, as well as we’re going to fight back,” he said. “With Congress, Canada has done a lot of lobbying as well as engagement as well as in which will continue.”
Leblond said some trade lawyers believe Trump does not have authority to exit NAFTA without congressional approval since the idea put the trade act into law. Business leaders, trade groups as well as many members of Congress oppose leaving the trade agreement, which has spawned a web of interrelated industries as well as supply chains across all three countries.
“Congress could try to challenge Trump’s authority,” Leblond said. “I could see This specific mired inside the courts for quite a while.” He said the idea could ultimately be decided by the Supreme Court.
Clifton also expects a bitter fight if Trump attempts to withdraw.
“We believe there would likely be a private lawsuit, as well as we believe congressional leadership would likely sign on to in which private lawsuit, as well as the lawsuit would likely say the president doesn’t possess the authority to pull out of NAFTA,” he said. “in which’s one school of thought.” He said the suit could be brought by a business group or association.
Hartasanchez said even with the six-month period in which would likely pass after a withdrawal via NAFTA is usually announced, the idea could still be in effect because of the anticipated legal challenges.
“Everything is usually related. Mexico had nothing to do with G-7, however right now given Canada’s decision as a host of G-7, the idea has put Mexico in a difficult position with NAFTA,” said Hartasanchez.
Aside via NAFTA, trade experts say another concern is usually the possibility Trump could impose tariffs on imported cars. The administration is usually investigating whether the idea should do so on the grounds of national security. Congress is usually attempting to push legislation in which would likely block Trump via using national security as a reason for tariffs without congressional approval, however the idea’s not seen as having much chance.
According to the Peterson Institute, 187,000 U.S. jobs could be lost if the U.S. withdraws via NAFTA, over a one- to three-year period, as well as even more if the U.S. drops out of the Canada- United States Free Trade Agreement.
If the U.S. leaves NAFTA, Mexico as well as Canada would likely remain inside the idea unless they also withdrew.