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NAFTA threat shrugged off

Donald Trump's sudden threat to blow up NAFTA less than a week into its renegotiation isn't drawing much of a response from the other North American countries, which are downplaying his remarks.

Canada and Mexico say it's a predictable event in the course of a trade negotiation.

"As we said last week, trade negotiations often have moments of heated rhetoric," said Adam Austen, a spokesman for Foreign Affairs Minister Chrystia Freeland. "Our priorities remain the same and we will continue to work hard to modernize NAFTA, supporting millions of middle class jobs. ...

"Canada's economic ties with the United States are key to middle-class jobs and growth on both sides of the border. Nine million American jobs depend on trade and investment with Canada."

The Mexican foreign minister described it as an obvious leverage play: "No surprise: we're in a negotiation," Luis Videgaray tweeted in response to Trump. "Mexico will remain at the table with calmness, firmness and in the national interest."

This comes after the president told a partisan crowd at a rally that he doubts a deal is possible. Trump said he'll try negotiating but will probably wind up killing NAFTA.

"Personally, I don't think we can make a deal," Trump told a campaign-style rally in Arizona on Tuesday night. "Because we have been so badly taken advantage of. They have made such great deals — both of the countries, but in particular Mexico — that I don't think we can make a deal.

"So I think we'll end up probably terminating NAFTA at some point."

He repeated it: "I told you from the first day, we will renegotiate NAFTA or we will terminate NAFTA. I personally don't think you can make a deal without termination, but we'll see what happens. You're in good hands, I can tell you."

The president's threat itself is no surprise. A common topic of hallway chatter at last week's first round of talks last week was just when he might deploy that withdrawal threat, which many view as his principal source of negotiating leverage. 



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