President-elect Donald Trump had criticized NAFTA during his campaign, at one point calling it "one of the worst things that ever happened to the manufacturing industry."
His 100-day action plan states that he will either renegotiate the deal, or completely withdraw from it.
But how would this actually play out on a practical level and affect those involved in the trade bloc? León Krauze, an anchor for Univision's KMEX and a contributor to the New Yorker, joined us to talk about what could happen to Mexico's economy.
On Mexico's reaction to Trump's plans:
Some in the Peña Nieto government seem more worried than others. There seems to be less concern when it comes to trade and NAFTA, honestly. Ildefonso Guajardo [Villarreal], who's Mexico’s secretary of the economy, has repeatedly said that he’s very confident that Trump won’t break up the treaty and insists that renegotiating would be, and I quote, "insane," so I think most of the Peña Nieto administration is operating — perhaps naively, if you ask me — under a best-case scenario when it comes to Trump and trade.
On the effects of a NAFTA withdrawal:
If NAFTA were to disappear tomorrow, Mexico’s economy would contract in such a dramatic fashion that the country would most likely fall into deep recession. But as you know, the United States would also suffer. I mean, more than 14 million American jobs depend on trade done through NAFTA with Canada and Mexico.
Click the above audio player to hear the full interview.
“I think the best compliment I can give is not to say how much your programs have taught me (a ton), but how much Marketplace has motivated me to go out and teach myself.” – Michael in Arlington, VABEFORE YOU GO