Donald Trump announces new trade deal with Mexico

Donald Trump announces new trade deal with Mexico

Donald Trump announces new trade deal with Mexico

U.S. Trade Representative Robert Lighthizer told reporters on a conference call that the new agreement with Mexico "will lead to a rebalancing" and generate more jobs for American and Mexican workers.

The agreement does appear to resolve - at least between Mexico and the US - two contentious issues that would represent big wins for the Trump administration. That won't come without costs, but now we have a better idea of what they are.

Trump has threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbors and warned he expected concessions on Canada's dairy protections.

TORONTO: Canadian Prime Minister Justin Trudeau said Tuesday he would sign a revamped continental trade agreement that is "good for Canada", after the United States and Mexico hammered out their differences to reach a tentative accord.

On Monday, President Trump called in the TV cameras to record a speakerphone call with Mexican President Enrique Peña Nieto on NAFTA negotiations.

Trump's NAFTA approach was "straight from his Art of the Deal playbook", according to Paul Ashworth, chief USA economist at Capital Economics.

"We will only sign a new NAFTA that is good for Canada and good for the middle class", said the Canadian foreign ministry in a statement, indicating Ottawa's willingness to "continue to work toward a modernized NAFTA".

No, Congress has jurisdiction over trade and has to ratify any new trade agreement inked by the administration.

Industrial companies, banks and big technology stocks are among the biggest winners in midday trading on Wall Street.

On labor: The new deal updates rules on intellectual property rights and labor negotiations. General Motors rose 4.3 percent and Ford climbed 2.8 percent.

The costs for the United States would also be high, as America's auto sector uses parts that are manufactured in Canada.

"It's an incredible deal for both parties", Mr Trump said.

USA automakers have opposed raising the North American content requirement, but the United Auto Workers union has supported it. That percentage will be increased to 75% from 62.5%. The government says the changes will "incentivize billions a year in vehicle and automobile parts production in the United States, supporting high-wage jobs". That is a far cry from the original USA demand. The delegation also included Jesus Seade, a World Trade Organization veteran tapped by Mexican President-elect Andres Manuel Lopez Obrador as his future chief trade negotiator.

First of all, it does not appear that the us and Mexico have actually concluded negotiations. Canadian Foreign Minister Chrystia Freeland, who is in charge of Nafta, is due in Washington on Tuesday for talks.

During Tuesday's televised call, Trump indicated that Canada could do a separate deal with the USA or one that's incorporated into the new bilateral deal with Mexico.

The clock is ticking for Canada to come to a trade agreement with the United States after Donald Trump gave an ultimatum - sign an agreement by Friday, or else. Instead, the United States and Mexico agreed to a 16-year lifespan for NAFTA, with a review every six years that can extend the pact for 16 years more, providing more business certainty.

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