In a major move for the business world, the US President Donald Trump has said that he will give formal notice to the US Congress in the near future to terminate the North American Free Trade Agreement (NAFTA).
He added that the lawmakers will have six months to approve a new trade deal signed.
Trump told reporters the trade rules before NAFTA “work very well.” NAFTA allows any country to formally withdraw with six months notice.
The deal includes Trump, Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto.
It is now known as United States-Mexico-Canada Agreement (USMCA).
The US Chamber of Commerce said last year that exiting NAFTA without a new deal could devastate American
agriculture apart from costing hundreds of thousands of jobs.
The leaders of the three countries agreed on a deal in principle to replace NAFTA, which governs more than $1.2
trillion of mutual trade, after acrimonious negotiations concluded on September 30.>