NAFTA/TRADE DEALS/TRUMP AS PRESIDENT: “As the United States, Canada and Mexico head for a second round of talks this weekend to renegotiate the North American Free Trade Agreement, President Trump is ramping up his bluster about simply terminating the pact instead.
But many former trade negotiators and experts agree that the president’s threat to cancel NAFTA is essentially an empty one, more likely intended as a bargaining ploy.
For one thing, Trump lacks the legal authority to unilaterally end all U.S. obligations under the 23-year-old agreement with Canada and Mexico. Some of that power rests with Congress.
And even if the president moved for a withdrawal, he would almost certainly face legal challenges and come under enormous pressure because of domestic economic and political considerations. His base in rural America, in particular, would be slammed by a U.S. pullout…
Under NAFTA, Trump or the leaders of Canada and Mexico, for that matter, could withdraw from the trade agreement by simply giving six months’ written notice — which Trump has not yet done.
But there is a separate U.S. act that put NAFTA into effect. This law states that only a few sections of the accord would cease to apply upon withdrawal, and even then it’s unclear what the practical effects would be. Many provisions could be left in limbo and presumably would have to be repealed by Congress.
Much of the agreement — including key chapters on North American content requirements, access to government procurement, on investment and services trade — would not be invalidated merely by Trump’s action, according to legal scholars.”
-Don Lee, “Why Trump’s threat to withdraw from NAFTA is an empty one,” The Los Angeles Times online, Aug. 30, 2017 03:00am