The Trump administration alarmed Republicans on Wednesday with its consideration of an executive order that could lead to the United States' withdrawal from NAFTA — with
some lawmakers warning that such a move would be a "disaster."A draft order has been submitted for final stages of review and could be unveiled late this week or early next, two White House officials told POLITICO. The effort, which still could change in coming days as more officials weigh in, would indicate
the administration’s intent to withdraw from the sweeping Clinton-era pact by triggering the timeline set forth in the deal.
The approach appears designed to extract better terms from Canada and Mexico.
“I think we’d better be careful about unintended consequences,”
said Senate Majority Whip John Cornyn.
President Donald Trump pledged on the campaign trail to renegotiate or otherwise withdraw from NAFTA, a trade deal signed in 1994 by former President Bill Clinton that removes tariffs and allows for free flow of goods and supplies between the North American triumvirate. Trump in recent weeks has stepped up his rhetoric against the trading partners, returning to threats he had shied away from since taking office and once again vowing to terminate the agreement all together.
“NAFTA’s been very, very bad for our country,” he said in a speech last week in Kenosha, Wis. “It’s been very, very bad for our companies and for our workers, and we’re going to make some very big changes or we are going to get rid of NAFTA once and for all.”
No fewer than four influential Republicans said the White House should hold up,
with GOP Sen. John McCain of Arizona saying that such a move would have “the worst possible impact” on his state.
“I’d be glad to have renegotiation of some of the terms of it, because a lot of time has passed,” McCain said, arguing that
a withdrawal would “be disgraceful and a disaster.”Sen. Jeff Flake, another Republican from Arizona, said a withdrawal would be devastating to the country as well as to his state. “It’s not a zero-sum game,” he said.
Sen. Lindsey Graham admitted to being skeptical of NAFTA initially, but the South Carolina Republican said the pact has brought benefits to the economy. “Trying to negotiate NAFTA makes sense, withdrawing from it doesn’t,” he said.
Senate Finance Chairman Orrin Hatch, who oversees trade in the upper chamber, said he would “have to look at what they’re trying to do” before he could offer an opinion.
http://www.politico.com/story/2017/04/26/white-house-nafta-withdraw-trump-237632
