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What happens if NAFTA is cancelled?

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President Trump continues threatening to withdraw the United States from the North American Free Trade Agreement, and with negotiations on rocky ground, that risk could soon become reality. Withdrawing from the pact would bring big changes for the economy and for consumers. read more

He also points to NAFTA: the three-country agreement has a clear termination clause and, in addition, the domestic U.S. NAFTA-implementation law's section 415 says that if a country pulls out, key provisions cease being in effect. He predicts five things would happen if Trump cancelled NAFTA: —The dispute-resolution systems would disappear quickly. read more

Nafta essentially reduced tariffs between the three countries to zero. Without it, tariffs would revert to levels under the World Trade Organization. That’s an average 7.5% tariff on American goods coming into Mexico, and as much as 150% for certain products such as meat and poultry. read more

Source: qz.com

He predicts five things would happen if Trump cancelled NAFTA: –The dispute-resolution systems would disappear quickly. –Trump would re-institute tariffs on Mexico, averaging 3.5 per cent as per the U.S’s WTO standard. read more