The Los Angeles Times‘ Don Lee is one of the many, many sources to note the potential for a complete implosion of the Mexican-American economic relationship. What else can be said but that this risks the long-term economic future of North America?
“I think it’s very dangerous — dangerous economically and dangerous politically,” said Timothy Wise, a globalization and Mexico-economy expert at Tufts University, referring the possible pullout.
Under NAFTA, which also includes Canada, any of the three countries can exit from the agreement after giving six months’ notice. Trump had threatened during the campaign to walk away from NAFTA and to impose tariffs of 35% on Mexican goods coming into the U.S.
On Thursday, the White House proposed a complicated 20% tax on sales by U.S. companies of imported goods from Mexico and other nations to help pay for the wall.
Since his election, Trump and top economic officials have spoken frequently about their desire to renegotiate the 23-year-old pact, which many across the political spectrum believe needs to be revised and updated.
But Trump’s early actions as president to crack down on illegal immigration and his insistence that Mexico pay for a wall across the southern border were met with tough responses from Peña Nieto and other Mexican officials, some of whom indicated that Mexico was prepared to leave NAFTA if there weren’t clear benefits for their nation.