"Our integrated economies and supply chains support millions of jobs across the continent".
Pacheco feels the NAFTA negotations might mimic a recent trade deal between US and China that many called lackluster. It proposes "modernization" of the agreement, with new provisions on digital trade, intellectual-property rights, labor and environmental standards, regulatory measures and so on.
"As a starting point for negotiations, we should build on what has worked in NAFTA and change and improve what has not", Lighthizer said.
Lighthizer told reporters Nafta has been successful for American agriculture, investment services and the energy sector, but not for manufacturing.
With a letter to US lawmakers on Thursday, US Trade Representative Robert Lighthizer triggered a 90-day consultation period with Congress, and representatives of industries to renegotiate NAFTA - one of the world's biggest trading blocs. The announcement came as Mexico's Foreign Secretary Luis Videgaray was meeting with US Secretary of State Rex Tillerson in Washington.
NAFTA, which took effect in 1994, was a three-country accord negotiated by Canada, Mexico and the United States with an aim to eliminate most tariffs on products traded among the three countries. "That's unacceptable. If we don't make things in America, we won't have a middle class in America". Insisting on ideas like that would make agreement hard to reach. However, the President is now moving towards renegotiating the deal as ending it would be a "shock to the system". "NAFTA is a trilateral agreement and the conversations need to be trilateral in nature".
The White House has said it is seeking of winning better terms for United States workers and manufactures by renegotiating the trade agreement.
Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam were the nations in the agreement.
Back in March, a draft of a letter sent to lawmakers said the Trump administration would seek tax equality and the ability to slap tariffs on Mexican and Canadian imports if they pose a serious injury threat to US industry.
The Council on Foreign Relations website indicates that NAFTA "fundamentally reshaped North American economic relations, driving an unprecedented integration between Canada and the United States' developed economies and Mexico, a developing country". But since it took effect in 1994 and eased tariffs, annual farm exports to Mexico have jumped almost five-fold to about $18 billion.
The renegotiation provides the Trump Administration with a unique opportunity to reset the US trade agenda, according to National Farmers Union (NFU). As President Trump moves forward with renegotiating with Canada and Mexico, I am confident this will result in a better deal for our farmers, ranchers, foresters, and producers.
On a scale of one to 10, though, we're still in the early days.
Negotiated by President George H.W. Bush and signed into law by President Bill Clinton, NAFTA took effect on January 1, 1994. The agreement eliminated numerous tariffs on trade between the US, Canada and Mexico.