NAFTA Notice Would Devastate Farm Economy

Dan Industry News Release, Trade

naftaPresident Trump has been weighing the idea of giving notice that the U.S. intends to withdraw from the North American Free Trade Agreement (NAFTA) as a way of taking a tough stance on the negotiations.

Politico’s Morning Ag Report says even giving the notice would cause immediate harm.

A group of 86 food and agriculture groups sent a letter to Commerce Secretary Wilbur Ross that says, “contracts would be canceled, sales would be lost, competitors would rush in to seize our export markets, and litigation would abound, well before withdrawal would actually take effect.” The groups contend that if a withdrawal notice is issued, that action would result in a loss of at least 50,000 jobs in the U.S. food and agriculture industry, as well as a $13 billion drop in GDP.

Mexico has already said that a Trump message to Congress invoking NAFTA article 2205, which allows any country to walk away after six months, would mean Mexico pulling out of negotiations immediately.

Canadian Prime Minister Trudeau would also face immediate pressure to leave negotiations as well.

From the National Association of Farm Broadcasting News Service.