Success for NAFTA Update Hinges on Compromise

December 06, 2018 at 10:51 AM

Whether President Donald Trump’s deal to update NAFTA is ratified by Congress will depend on his willingness to compromise on details, says Bloomberg News.

Canada, Mexico and the U.S. signed the new U.S.-Mexico-Canada Agreement last week. But Trump sought a day later to limit debate about the new measure by threatening to nullify the existing North American Free Trade Agreement within six months.

Doing so could mean no trilateral trade deal at all by June if Congress fails to approve the USMCA. Democrats have signaled they want the pact to include stronger labor protections. But congressional sources tell Bloomberg that an infrastructure package might satisfy the opposition.

Democrats say they’re willing to negotiate but need the Trump administration to at least consider some options. Neither side is eager to scrap USMCA, suggesting there is room to compromise.