WASHINGTON—The White House is telling U.S. media that it’s mulling a notice of withdrawal from NAFTA, applying shock treatment on other parties to get cracking on negotiations under the threat of having the seminal trade deal obliterated.Various media say Trump is considering detonating the trade equivalent of a nuclear option: An executive order to withdraw from the trade agreement, which would instill fear in members of Congress, industry and Canadian and Mexican trade negotiators.The administration has complained lately that American lawmakers are dragging their feet on naming a trade czar and excessively slow in approving the 90-day legal notice to kick off negotiations.Read the latest news on U.S. President Donald TrumpIt may now stir them to act.The White House has let it be known, through the Washington Post, Politico, and CNN, that President Donald Trump is considering an executive order threatening withdrawal, and the New York Times reported late Wednesday that he’s actually leaning toward issuing that order.Such a move might appear more dramatic than it actually is.There are still multiple layers between an announcement and actual withdrawal, says a veteran of Canada-U.S. free trade. First, will Trump announce it? If he does announce it, will he follow through? And if he follows through, will Congress undo the NAFTA implementing legislation?One thing’s certain: the move would scare people.“It would be a nothing. But it would be inflammatory,” said Jon Johnson, a negotiator in the original Canada-U.S. trade agreement, a government adviser on NAFTA and now a C.D. Howe Institute analyst.“I suspect many in the press would freak. I would.”He pointed out that NAFTA does not have an automatic-exit clause.Read more: Ex-U.S. ambassadors to Canada blast Trump’s ‘goofy’ tone over trade issuesCanada braces for ‘tough times’ in U.S. lumber disputeLumber may be only the beginn ...
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