The Potential Effects of Renegotiation of NAFTA

The Polish Institute of International Affairs is an analytical institution established by an act of Parliament in 1996 to carry out research and provide expertise in international affairs. PISM disseminates information on contemporary international issues and maintains contacts with academic and political centres in Poland and abroad. The Institute runs courses for public servants, maintains a library (open to the public; 165,000 books and journals), organises conferences, and publishes books, periodicals and documents on Polish foreign policy and international matters.

The funding for PISM comes from the budget. The director is appointed by the prime minister for a term of five years, following consultation with the minister of foreign affairs. The minister supervises the Institute and appoints its advisory council, which includes a representative of the President of the Republic of Poland, academics and officials.In the U.S. presidential campaign, Donald Trump criticised NAFTA, calling it the “worst trade deal” the U.S. had ever signed. He decried the agreement as contributing to the high U.S. trade deficit with Mexico and loss of jobs to that country. In the first days of his presidency, Trump said his administration would renegotiate NAFTA to make it more beneficial to the U.S. Talks on this issue could take a while. Moreover, if the partners remained inflexible in their demands, withdrawal from NAFTA could not be excluded. Its renegotiation might also have a negative impact on the world economy, partly by increasing uncertainty and limiting investment in NAFTA member states.