Trump announces 'incredible' trade deal with Mexico

Trump announces 'incredible' trade deal with Mexico

A spokesman for Freeland said on Monday that Canada would only sign a new agreement that is good for the country. "It's a big day for our country", Trump told reporters.

President Donald Trump has said it's not the right time for trade negotiations with China, denting expectations for a near-term deal after a breakthrough agreement between the United States and Mexico.

In a statement, Trump said "America has ... finally turned the page on decades of unfair trade deals that sacrificed our prosperity and shipped away our companies, our jobs and our Nation's wealth".

"We'll get rid of the name NAFTA, it has a bad connotation because the United States was hurt very badly by NAFTA for many years", Trump said.

Shares of Canadian auto-parts manufacturers rallied on Monday even as U.S. President Donald Trump threatened he could put tariffs on Canadian-made cars if a three-way deal could not be reached.

Talks to overhaul the agreement began a year ago and have proven contentious.The Trump administration wants a higher percentage of auto production to come from within the NAFTA bloc before qualifying for duty-free status.

"Trade Representative Robert Lighthizer appears to have weakened USA demands that the new deal should include an automatic five-year break clause, under which the agreement would need to be explicitly renewed by the legislative bodies in each of the three countries", Ashworth said.

Over the weekend, US and Mexican negotiators worked to narrow their differences, capping talks that had begun a year ago and have proved highly contentious. "Peña Nieto promised Trump, who doesn't drink, a tequila toast", and Trump concluded by saying he'd just sealed a deal with Canada.

Kudlow declined to comment on whether the USA and Canada could reach an agreement during renewed talks this week, when Canadian Foreign Minister Chrystia Freeland will arrive in Washington, D.C.

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Trump says the details are still being finalized but noted the deal is good for trade, jobs and farmers.

"I think it's an elegant name", Trump said at an event Monday at the White House. "We've gone through all this with steel and aluminum, but the auto industry is a lot bigger".

No new tariffs would be imposed on agricultural goods traded between the USA and Mexico, according to reports.

"When that happens, I can't quite tell you, it depends on what the timetable is with Congress, but I'll be terminating the existing deal and going into this deal", he said.

Whatever it's called, the deal appears significant, but it lacks detailed specifics.

Through an interpreter, Pena Nieto reminded Trump four times Monday that he hoped Canada would be part of an eventual trilateral agreement. "Maybe the largest trade deal ever made". It would also require 40% to 45% of the auto to be made by workers earning at least $16 an hour.

"We will only sign a new NAFTA that is good for Canada and good for the middle class", he said, adding that "Canada's signature is required". Paul Waldman, a liberal columnist at the Post, writes that Trump's celebratory announcement Monday was premature: "It's entirely possible that at the end of all this we'll end up with a version of NAFTA that serves Americans better than the current one".

Mr. Trump has the authority to renegotiate NAFTA as a trilateral agreement, so Canada must be involved, said Michelle Casario, an assistant professor of economics at Villanova University.

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