The Trump administration has informed the United States Congress on Thursday of its intention to renegotiate the North American Free Trade Agreement (NAFTA), according to a letter obtained by CNBC.
The letter sent to American lawmakers by the US Trade Representative Robert Lighthizer stated that President Donald Trump wants to "modernize" the agreement made between the US, Mexico and Canada some 25 years ago. This means that new provisions should be included in the document, addressing intellectual property rights, regulatory practices, state-owned enterprises, and labor, among other things, the letter revealed. Moreover, the administration intends to establish "effective implementation and aggressive enforcement" of the commitments made by its trading partners, Lighthizer claimed.
The US is allowed to initiate the renegotiation 90 days following the notification to Congress.
