(Cecilia Tortajada – U.S. News and World Report)
Among other threats targeting Mexico during his election campaign, U.S. President Donald Trump harshly criticized the North American Free Trade Agreement (NAFTA), a 23-year-old tripartite deal that removed tariffs and significantly increased commerce between Canada, the United States and Mexico.
Renegotiation of the deal is likely to start late this year.
As Trump has pointed out, NAFTA contributed to a U.S. trade deficit with Mexico reaching US$63.2 billion last year. This is the country’s fourth-largest trade deficit, after China, Japan and Germany. America’s deficit with the other NAFTA nation, Canada, was slightly over US$11 billion in 2016.
But that’s only part of the story. Remove cars and auto part imports, for example, and the U.S. deficit with Mexico virtually disappears. Click here to read more.