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.

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“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.”