Cornyn says he’s ‘concerned’ about the fate of NAFTA
Texas Sen. John Cornyn said Friday he was “concerned” about the future of the North American Free Trade Agreement as the Trump administration continues to press ahead with what he described as “populist impulses.”
Cornyn, who as the majority whip is the second most powerful Republican in the Senate, said President Donald Trump has in meetings raised the possibility of issuing a notice of termination to Mexico and Canada, which would set in motion a U.S. withdrawal from the 24year-old free trade pact.
“We said, ‘No, no, no,’ ” Cornyn said at the CERAWeek by IHS Markit energy conference, hosted by the consulting firm IHS Markit. “We need to convince him trade deficits aren’t the end-all and be-all.”
Negotiations on the agreement continue between the three nations. Speaking at the White House on Thursday, Trump said, “I have a feeling we’re going to make a deal on NAFTA,” before adding that if no deal can be reached, “then we’re going to terminate NAFTA and we’ll start all over again or we’ll just do it a different way.”
Economists, businesses and political leaders in Texas have worried that dismantling NAFTA would be disastrous for the state economy. Texas companies sold nearly $100 billion in goods to Mexico in 2017, accounting for about 40 percent of the state’s exports, according to WiserTrade.org, which tracks trade data.
Trump’s comments on NAFTA also have stoked fears in the Texas oil and gas industry that the movement of oil, natural gas and fuels across the Mexican and Canadian borders could be interrupted. And now with Trump putting tariffs on foreign steel and aluminum, the prospects of a trade war are rising.
During his appearance, Cornyn said he worried about the departure of National Economic Council Director Gary Cohn, a free-trader who was said to have opposed the tariffs. Trump, who has called NAFTA “the worst trade deal ever made,” is increasingly sur-
rounded by protectionists in the White House, including Peter Navarro, an economist and trade adviser to Trump.
“I’m sorry to see Mr. Cohn leave and the ascent of Navarro, who I think has a lot of wrong ideas,” Cornyn said. “The president needs advice, and it can’t be one side of the equation.”
But Cornyn and Sen. Lisa Murkowksi, R-Alaska, who also appeared Friday at CERAWeek, said the administration had changed “everything” for the U.S. energy sector by pulling back environmental regulations and reducing tax rates. Trump has moved to expand drilling on public lands and moved to undo emissions and other rules put in placed under the Obama administration as it pursued an agenda aimed a combating climate change.
The recently enacted tax overhaul slashed corporate tax rates to 21 percent from 35 percent.
“When you think about where we were last year and where we are this year, it’s a world apart,” Murkowski said.