CEOs urge Trump to leave NAFTA’s foundation in place

A group of 32 chief executive officers wrote a letter to the White House, saying they are willing to work with the administration to “modernize” the deal rather than on an overhaul that starts from scratch, the Wall Street Journal reported.    A group of 32 chief executive officers from major companies sent a letter to the White House, urging President Trump to move quickly on an update of the North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico, but not to mess with the underlying structure, the Wall Street Journal reported.
   The CEOs emphasized the benefits they get from NAFTA, and said they are willing to work with the administration to “modernize” the deal rather than on an overhaul that starts from scratch.
   In addition, the CEOs explained how the trade deal supports 14 million American jobs and a trading volume of $3.5 billion daily.
   Some of the letter’s signatories included
     • David MacLennan, CEO of Cargill Inc., which benefits from duty-free agricultural sales to Mexico and Canada;
     • Lance Fritz, CEO of Union Pacific Corp., which handles 70 percent of rail volumes to and from Mexico;
     • And Steven Rendle, CEO of VF Corp., which imports many brands bought by American consumers.
   “We encourage the administration to proceed quickly and trilaterally,” the executives said. “Uncertainty about the future of America’s terms of trade with Canada and Mexico would suppress economic growth and may cause political reactions that undermine U.S. exporters.”
   On May 18, the Trump administration sent a letter to Congress signaling its intent to renegotiate NAFTA. The U.S. is allowed to start renegotiating the agreement 90 days from the notification to Congress, and the U.S. trade representative is required by Congress to publish more detailed objectives at least 30 days prior to when the formal negotiations begin.
   Just last week, the U.S. Department of Transportation’s Bureau of Transportation Statistics said the total value of cross-border trade between the United States and its NAFTA partners in March exceeded $100 billion for the first time since October 2014. NAFTA trade values stood at $100.3 billion for the month, an increase of 10.9 percent from March 2016.