Business groups reacted with cautious optimism to President Trump’s announcement Thursday that he would not issue an executive order pulling out of the North America Free Trade Agreement.
Trump had contemplated the move Wednesday but pulled back Thursday after a lobbying blitz by business leaders and conversations with the leaders of trade partners Canada and Mexico. The president said pulling out would be a “pretty big, you know, shock to the system.”
Agriculture groups, who are heavily involved in international trade, were the most vocal. “Thank you for your recent decision to choose the path of renegotiation for the North American Free Trade Agreement, rather than withdrawal,” said Zippy Duvall, president of the American Farm Bureau Federation.
“As you know, overall, NAFTA has been overwhelmingly beneficial for farmers, ranchers and associated businesses all across the United States, Canada and Mexico for decades. Walking away from those gains would have been a severe blow to the agricultural sector and we appreciate the path that will allow for reform and enhancement, rather than abandonment of past achievements,” Duvall said.
Ron Moore, president of the American Soybean Association, said his group was “relieved by the president’s decision that the United States will work on improving the NAFTA rather than withdrawing from it.”
Most other major trade groups issued no statement regarding the administration’s back and forth on NAFTA over the previous 24 hours. Behind the scenes they were heaving a sigh of relief after Trump comments’ Thursday backing down.
“For the business community and the agriculture community this was a good experience. They really stetched their lobbying muscles. The White House got an earful,” said a source at one major trade group who requested anonyminity.
