Nafta failure would have big US consequences: Stephen Schwarzman

Blackstone Group Chairman Stephen Schwarzman said a collapse of the North American Free Trade Agreement would have major consequences for the U.S.

“The consequences of not doing Nafta for the United States are very severe,” Schwarzman told FOX Business’ Maria Bartiromo on Friday. “We sell $130 billion of goods to China, but we sell about $550 billion to Canada and Mexico. Canada and Mexico are very, very consequential, and I think if we didn’t make that deal, it would have political ramifications.”

The world’s largest alternative-asset manager said the U.S. is close to striking a deal on Nafta with Canada and Mexico, but all parties must find a compromise on a clause that would effectively terminate Nafta every five years. That provision is a deal breaker for Canada and Mexico.

“If the Mexicans and the Canadians can compromise on those – that point and one other one, which is judicial, then you’ll have a deal,” Schwarzman said on “Maria Bartiromo’s Wall Street.”