Trump threatens again to tear up NAFTA

President Donald Trump at a rally in Cedar Rapids Iowa talking about the North American Free Trade Agreement

Negotiators for Canada and Mexico believe that NAFTA needs to be updated, but insist the 23-year old trade pact has been an economic success.

During the Tuesday's speech, Trump also threatened to shut down the USA federal government if Congress does not present him with a spending bill for the next fiscal year that includes funding for a wall on the southern border.

"If we have to close down our government, we're building that wall", he said, without mentioning his prior insistence that Mexico would pay for it. They are very hard.

The president also said Mexico and Canada are being hard in the renegotiation of NAFTA, suggesting he may terminate the agreement if the two countries do not put forth a good deal for the U.S.

USA lawmakers return from their summer recess on Sep 5 needing to come up with a deal to fund the government and raise the federal debt ceiling.

Trump promised to build his signature wall along the U.S. -Mexico border, calling it "absolutely necessary". "Mexico will pay for it through reimbursement/other", he tweeted.

But Democrats oppose including wall spending in the spending bill, and Republican leaders will struggle to pass it, while also opposing a government shutdown.

"What we'll do here is go through the mechanism of getting the original initial money that we need for that capital project from Congress through an appropriations process and we'll responsibly construct the barrier on the border", he said.

"As we work with the Mexicans and other policies and trade policies and such, we'll determine ways for us to make that right".

President Donald Trump tweeted Sunday about a supporter's new book, his proposed border wall, and trade deals, while southwest Texas is facing catastrophic flooding.

I received calls from the President of Mexico and the Prime Minister of Canada asking to renegotiate Nafta rather than terminate, I agreed subject to the fact that if we do not reach a fair deal for all, we will then terminate NAFTA.

Trump had recently emphasised that the NAFTA talks with Canada and Mexico would not achieve a successful end.

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