US, Trump, Mexico NAFTA trade deal: auto, agricultural details

US, Trump, Mexico NAFTA trade deal: auto, agricultural details

"It could end in one day and we take in a lot of money the following day", said Trump.

Freedland's arrival signals Canada's return to the Nafta talks after being sidelined following a meeting between Trump and the Canadian prime minister, Justin Trudeau, at the G7 in Quebec in June.

Negotiations among the three partners, whose mutual trade totals more than $1 trillion annually, have dragged on for more than a year, putting pressure on the Mexican peso and the Canadian dollar.

"We remain wary of the current rally in risk appetite, and see it as short-lived".

"We could have a separate deal or we could put it in the same deal", Trump said.

President Trump spoke to reporters from the Oval Office, with the Mexican president on the phone.

Foreign Affairs Minister Chrystia Freeland is cutting short a diplomatic trip to Europe to re-enter the high-level talks in Washington on Tuesday.

US Trade Representative Robert Lighthizer said the White House was ready to notify the US Congress by Friday of President Donald Trump's intent to sign the bilateral document, but that it was open to Canada joining the pact.

University of Ottawa professor Patrick Leblond told AFP, "President Trump wanted to get a win quickly, at least publicly". Trump says negotiations with Canada have yet to begin and is calling on the country to negotiate fairly.

A senior White House official added that Canada would be brought in to the trade discussions on Monday afternoon.

The third NAFTA partner, Canada, has not been at the negotiating table for many weeks.

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Canada's top trade negotiator joins her Mexican and USA counterparts in Washington on Tuesday in a bid to remain part of a trilateral North American trade pact, as US officials expressed optimism a deal could be reached this week.

Trump is announcing a trade "understanding" with Mexico that could lead to an overhaul of the North American Free Trade Agreement.

The new agreement - pending the required signatures - could also change the proportion of a vehicle that must be made by workers who are paid $16 per hour or more. We're gonna call it the United States-Mexico Agreement.

"For more clarity, maybe ask the Mexicans", the official said.

The sides also agreed that 40-45 percent of cars must be made at "high wage" factories where workers receive $16 an hour in order to receive duty-free treatment, something that could deter off-shoring U.S. auto manufacturing to Mexico.

The provision is created to discourage carmakers to move jobs to lower-wage Mexico. Many key sectors, especially the automotive industry, have supply chains that snake across all three countries. American businesses could easily divert their exports away from Canada if trade barriers increase, according to research carried out by ScienceDirect.

Some Japanese automakers could face a similar challenge, but their responses on Tuesday were mostly positive.

"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". USA auto unions have been fighting for such a change for some time.

Nissan said it was "encouraged that an agreement was reached, and hope that it appropriately considers the impact on our employees, suppliers and customers". For both Canada and Mexico, this was a deal breaker because of the uncertainty of having to go back to Congress for approval every five years.

He thinks investors are also keeping in mind what happened in the Canadian market in the second quarter of this year, when it rose more than six percent despite the trade war fears, outperforming most other developed markets.

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