WASHINGTON – President Donald Trump announced Monday that he'll be "terminating" NAFTA as he pursues a trade deal with Mexico.
Trump made the announcement in the Oval Office, with Mexican President Enrique Pena Nieto joining by speakerphone.
The president said the call was held to "celebrate the understanding" the U.S. and Mexico have reached on trade.
"It's an incredible deal for both parties," Trump said.
Canada, which is part of NAFTA, didn't participate in the announcement, but Trump said he will be calling Canadian Prime Minister Justin Trudeau.
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"If they'd like to negotiate fairly, we'll do that. We could have a separate deal (with Canada) or we could put it into this deal," he said.
Trump also threatened to tax Canadian auto imports to increase the pressure on Canada's government.
San Antonio Chamber of Commerce President and CEO Richard Perez released the following statement in regards to the announcement.
"I am beyond delighted that we have reached a preliminary trade agreement with Mexico, Texas' most important trading partner. While we celebrate an important step in our relationship with Mexico, it is imperative that we remain committed to modernizing the North American Free Trade Agreement (NAFTA), which includes our second largest trading partner, Canada. To that end, we urge United States Trade Representative Robert Lighthizer to turn his attention to negotiating a long-term trilateral agreement soon.
"As the oldest and largest business organization in San Antonio, representing 2,100 businesses across San Antonio and the region, we have pushed for a strong, modernized NAFTA for the last two years, including testifying in front of the Senate Finance Committee in fall of 2017, and speaking to business and government leaders across Texas, Mexico, and Canada.
"With 63,000 jobs in San Antonio directly tied to NAFTA and 135,000 jobs indirectly tied to it, NAFTA is crucial to the continued growth and success of our city, our growing industries, and our economy. The San Antonio Chamber will remain vigilant in our support and advocacy for a successful, updated agreement with our neighbors to the north and south."
U.S. Sen. (R) John Cornyn, released the following statement:
"This is a positive step, and now we need to ensure the final agreement brings Canada in to the fold and has bipartisan support. A trilateral agreement is the best path forward, and any modernized agreement should do no harm to states like Texas whose economy has seen the benefits of cross-border commerce. Millions of jobs in Texas depend on an updated NAFTA, and it's important that we get this right."
U.S. Rep. (D) Henry Cuellar, released the following statement:
"While this entire process could have been avoided without the dramatization and harsh rhetoric from the administration, which has created uncertainty for business and stifled growth, this preliminary deal presents us with the opportunity to modernize the trilateral agreement which has grown trade between the United States, Canada, and Mexico from $290 billion in 1993 to over $1.1 trillion in 2016. These numbers reflect what I have said all along: NAFTA is an integral part of our economy. Businesses large and small throughout the country simply cannot function in an environment of unpredictability. They rely on the stability, as provided by this treaty, to grow and remain competitive.
"Although this deal is a step in the right direction, there is still a lot of work to do before Congress votes on this agreement. Canada still must agree to U.S.-Mexico agreements that affect their interests, and there is significant trilateral ground to cover. We must solidify a deal that includes Canada, so that we can build upon the successes of NAFTA and strengthen trade relations with both partners. I ask that the administration quickly provide me with a detailed briefing, so that I remain engaged on this issue. I will continue work with my colleagues on both sides of the aisle and in both chambers to make certain that the new U.S.-Mexico agreement continues to promote job growth and stimulate the economy, just as it has since its inception."