Abstract
The political and economic agenda of the Trump administration represents a challenge for neighboring Canada and Mexico linked to the USA by close integration ties. International trade, which is vital to the well-being of Canada and Mexico, loomed large in the recent presidential election campaign in the USA. Donald Trump promised to either renegotiate or pull the United States out of NAFTA, to "rip up" other trade agreements, and to impose a 35 percent tariff on imports from Mexico and a 45 percent tariff on imports from China. The article provides an overview of D. Trump's pronouncements on NAFTA and other trade agreements, tries to explain the causes of animosity towards NAFTA in the USA, describes Canada's and Mexico's attitudes toward Trump's proposals, and assesses limits and opportunities of the U.S. President's power to regulate foreign commerce and impose tariffs and quotas on imports without congressional consent. The analysis shows that Canada and Mexico experience a good deal of legitimate concern over Trump's trade threats. As a first step, Canada wisely decided not to antagonize D. Trump and to agree with him that the 23 year old NAFTA could be improved and modernized. In doing so, Ottawa proceeds from the assumption that Trump's major target is Mexico, not Canada. At the same time, Canada is doing all its best trying to mobilize its allies in the USA as well as to find sympathizers within the Trump administration and his inner circle.
Keywords
NAFTA, North American economic integration, regional free trade agreements, D. Trump, American protectionism, Canada-U.S. trade and economic relations, the USA, Canada and Mexico
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