The White House is reportedly in the late stages of finalizing an order that would withdraw the United States from the North American Free Trade Agreement, also known as NAFTA, Politico reports. President Trump vowed to renegotiate the 1994 trade deal on the campaign trail, arguing that NAFTA is "very, very bad for our country," a "job killer," and "the single worst trade deal ever." NAFTA, which was originally signed by President Bill Clinton, allows for the free flow of goods and services between the U.S., Canada, and Mexico without tariffs.
Based on information from two White House insiders, Politico writes that "the approach appears designed to extract better terms with Canada and Mexico." Politico adds: "But once Trump sets the withdrawal process in motion, the prospects for the U.S. pulling out of one of the largest trade deals on the globe become very real."
The draft was reportedly authored by Trump's National Trade Council head, Peter Navarro, who worked with White House chief strategist Stephen Bannon.