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AMLO On the Rise: Trump Not Only Factor That Could Derail NAFTA

Posted October 27, 2017

(Samuel Schofield – Frontera)

President Donald J. Trump swept into office with very public criticisms of NAFTA and other trade deals. He has threatened to withdraw from NAFTA as recently as this month, even with negotiations underway. His grievances center on NAFTA being unfair to US workers, especially manufacturers and small businesses, as well as the current US trade deficit with Mexico, which stands at around $64 billion.

His administration has also made several demands that complicate negotiations, including raising the US-made auto parts requirement, from the current 62.5% to 85%. Additionally, they have proposed eliminating NAFTA’s Chapter 19 dispute settlement mechanism, which allows companies to appeal trade decisions by domestic courts through an independent panel. Canada and Mexico strongly oppose each of these demands.

Amid the rhetoric, it is easy to overlook the fact that political forces in the US and Mexico are likely to be at least as significant as Trump. Mexico has a general election in July 2018 and the United States has congressional elections in November of that year. These elections generate a range of political scenarios, some favorable, but some leading to more polarization between the US and Mexico. Click here to read more.

Related: The Anti-Trump Is Rising in Mexico, Feeding on Every Snub (Bloomberg)