Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. Chamber of Commerce warns against tearing up NAFTA trade deal

Published 2017-02-06, 03:05 p/m
Updated 2017-02-06, 03:10 p/m
© Reuters.  U.S. Chamber of Commerce warns against tearing up NAFTA trade deal

(Figures in U.S. dollars)

By David Ljunggren

OTTAWA, Feb 6 (Reuters) - Any move to tear up the North American Free Trade Agreement would devastate the economies of members Canada, Mexico and the United States, the head of an influential U.S. business group said on Monday.

U.S. President Donald Trump, who says NAFTA has been a disaster for American workers, wants to renegotiate the deal and says he is prepared to walk away if he does not get the changes he wants. Donohue, president and chief executive officer of the U.S. Chamber of Commerce, said Canada and Mexico were America's two top export markets.

"Withdrawing from NAFTA would be devastating for the workers, businesses, and economies of our countries," he told a business audience in the Canadian capital Ottawa.

"Beneath all the debates, arguments, and attention-grabbing headlines, I think our leaders across the board understand this," said Donohue, who was due to meet Canadian Prime Minister Justin Trudeau later in the day.

Canada and Mexico both send the bulk of their exports to the United States and would suffer badly if NAFTA were ripped up.

Since Trump won the election, senior Canadian officials have stressed to their U.S. counterparts how closely linked the two economies are.

Trudeau also is fond of noting that 9 million U.S. jobs rely on exports to Canada, a point that Donohue repeated.

"First, let's do no harm. Let's preserve, protect, and advance the robust trade that supports both of our economies and millions of our workers," he said.

Donohue, who did not criticize Trump, said it was crucial for the United States to keep NAFTA as a single agreement rather than negotiating bilateral deals with Canada and Mexico.

"To address areas open for modernization or improvement, we would insist on doing it in a way that doesn't disrupt the $1.3 trillion worth of trade that depends on NAFTA," he said.

Perrin Beatty, who heads the Canadian chamber of commerce, noted that Trump had promised to boost employment.

"You don't create jobs by dismantling a relationship that works well," he told reporters after the speech.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.