After months of negotiations, President Donald Trump on Monday announced the United States and Mexico have come to an agreement on revisions to key parts of the North American Free Trade Agreement (NAFTA) - a trade agreement between the United States, Canada and Mexico. Trump has frequently condemned the 24-year-old NAFTA trade pact as a job-killing "disaster" for the United States. "We're going to call it the US-Mexico Trade Agreement".
"They used to call it NAFTA", Trump said".
Mexican Economy Minister Ildefonso Guajardo told reporters Monday morning that a NAFTA announcement was likely shortly as he headed into a meeting with U.S. Trade Representative Robert Lighthizer.
The agreement comes after a year of re-negotiations with Mexico, and the President said negotiations with Canada will begin soon.
New name: The new deal between the US and Mexico will aptly be called the United States-Mexico Trade Agreement, doing away with the NAFTA name, which Trump claims has "bad connotations", per Reuters. Under U.S. trade law, Congress must be notified 90 days before voting on the deal, meaning notification must happen this week to meet the timeline. Significant breakthroughs between Mexico and the USA came during the past several days on automobiles and energy. The big question now is whether Canada, the third party to the original deal, will come onboard.
Stocks are rising broadly as the USA and Mexico prepare to announce the details of the new trade agreement.
Daily Hive has reached out to the office of Canada's Minister of Foreign Affairs Chrystia Freeland for comment. They will also be required to use more local steel, aluminum and auto parts, and have a certain proportion of the vehicle made by workers earning at least $16 an hour, a boon to both the United States and Canada.
But Freeland also said, "We will only sign a new NAFTA that is good for Canada and good for the middle class". "It has a bad connotation because the United States was treated very, very badly for NAFTA".
It also puts other countries on notice that Mr. Trump isn't backing down from his America-first trade policies and his use of tariffs to force concessions from major trading partners such as China and the European Union.
"I believe the president is on the phone", Trump said, getting no response. A draft fact sheet specified the content would be made in the United States and Mexico.
But Trump has called the agreement "the worst deal maybe ever signed" and moved ahead with tariffs earlier this year.
Advisers of incoming President Lopez Obrador hailed the new deal, saying it represented progress on energy and wages for Mexico's workers. "Canada's signature is required".
But exactly what kind of announcement remains unclear. Other key issues are Chapter 19 anti-dumping panels, which the US wants to kill but which may be a deal-breaker for Canada, as well as Canada's protected dairy sector, which Trump is targeting to dismantle.