Trump may renew NAFTA but prefers deal to end

President Donald Trump indicated he might sign a renewal of the North American Free Trade Agreement (NAFTA), also known as T-MEC, but expressed a preference for the deal to be terminated. "I would prefer not to have the agreement, although it is possible that I will sign it," Trump said, adding that he believes the U.S. would be in a better position without a trade agreement with Mexico and Canada.

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I would prefer not to have the agreement, although it is possible that I will sign it. I think as a country we would be better off if there were no agreement, but I am open to doing it.

Trump, speaking in Paris after attending the G7 summit in France, noted that the T-MEC's review cycle has begun six years after its implementation. He recalled that the original NAFTA, which he called "the worst trade deal ever made," lacked an exit clause, unlike the T-MEC. He asserted that his partners accepted the T-MEC's six-year review mechanism expecting he would no longer be in the White House when it was time for evaluation.

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They expected that I would not be here.

"They expected that I would not be here," Trump stated. He also acknowledged the possibility that negotiations to revise the agreement might not succeed, saying, "Maybe we cannot reach an agreement." If the three countries agree to its continuation before July 1, the T-MEC will automatically extend for another 16 years. Otherwise, annual reviews could begin, potentially lasting a decade before the agreement expires. Mexico and Canada have publicly expressed their desire to renew the treaty, while the U.S. has signaled intentions to modify aspects like the automotive sector and access to the Canadian dairy market.

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Maybe we cannot reach an agreement.