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Trump wants new NAFTA deal to cut trade deficit with Mexico

AP  |  Washington 

President Donald Trump vowed to boost US manufacturing by cutting the USD 64 billion trade deficit with Mexico as he showcased products made in all 50 states everything from a fire truck to a baseball bat.

"No longer are we going to allow other countries to break the rules, to steal our jobs and drain our wealth," Trump said yesterday at a event that spilled from the East Room to the South Lawn.


Shortly after Trump's remarks, the US trade representative released an 18-page report about its goals for updating the decades-old North American Agreement with and Mexico.

In addition to reducing the trade deficit, the administration wants to insert a chapter on the economy into the deal. It also wants to strengthen labor and environmental obligations, as well as amending the rules of origin so that more of the products traded come from the United States and North America.

Facing an investigation into his campaign's ties with and a and health care agenda struggling to make headway as quickly as promised, Trump is turning his focus to trade this week. Administration officials are to meet Wednesday with economic officials from China, a nation the president has accused of dumping steel on the global market to hurt US steelmakers.

The emphasis on trade follows a string of other recent theme weeks on energy, job-training and infrastructure that mostly failed to draw much attention away from the inquiry.

The president took his time checking out products from all over the country: Trump donned a cowboy hat from Texas. He swung a baseball bat from Louisiana. And he even climbed into the cab of a Wisconsin-built fire truck and pretended to be a firefighter, saying, "Where's the fire? Where's the fire? Put it out fast!"

The new NAFTA objectives, a requirement to begin talks on updating the agreement in the next 30 days, contain the first specifics for a Trump administration that has made bold promises on trade.

Trump has pledged to recover factory jobs and boost wages by crafting new trade deals. Supporters note that NAFTA enabled companies to charge cheaper prices for products that range from cars to vacuum cleaners, helping many US consumers.

The president said he only seeks a level playing field for US companies and workers, but "if the playing field was slanted a little bit toward us, I would accept that, also."

But the president has a conflicted relationship with global trade. His namesake clothing business depended on the work of low-wage workers living overseas, as does the fashion line of his daughter and aide, Ivanka Trump.

As of now, Ivanka Trump's firm continues to have its products made overseas. Her lawyer, Jamie Gorelick, said in a statement yesterday that the president's daughter "has resigned from the company, does not control its operations, and has been advised that she cannot ask the government to act in an issue involving the brand in any way, constraining her ability to intervene personally.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 18 2017. 04:57 IST
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