4 takeaways from the U.S.-Mexico trade deal

27 August, 2018, 23:00 | Author: Kevin Carter
  • President Donald Trump

The Trump administration has reached a breakthrough in NAFTA talks with Mexico, clearing the way for Canada to return to the bargaining table for a mad dash to conclude a final deal.

President Trump made the announcement and brought Mexican President Enrique Peña Nieto onto a conference call.

Both the United States president and the Mexican president, Enrique Peña Nieto, said they had an understanding and thanked each other during a phone call listened into by reporters.

Trump said the NAFTA name will be discarded, citing a "bad connotation".

There is no deal reached yet with Canada, the people said, which has been on the sidelines of the talks since July as Mexico and the U.S focused on settling differences.

The last stipulation helps the USA and Canada, where wages tend to be higher, and fixes a long time gripe of those who opposed NAFTA, by reducing the incentive for auto manufacturers to move factories to Mexico where workers can be paid lower wages than is legal in the US and Canada. That's also technically true for Congress because the administration notified USA lawmakers that they were negotiating a "trilateral" agreement.

Another key part of the new trade deal increases the percentage of a auto that must be made in North America to qualify for lower-tariff import into the USA.

Canada's foreign minister, Chrystia Freeland, spent most of her time on visits to the USA lobbying governors and congressmen rather than talking seriously to our trade negotiators. A percentage of workers for vehicle manufacturers would also have to make more than $16 an hour. The new deal with Mexico would be signed in November.

More news: Drug Tunnel To Mexico Found Under Abandoned Arizona KFC

Canada plans to continue to negotiate, but would only sign a new agreement that is good for the country, a spokesman for Canadian Foreign Minister Chrystia Freeland said.

NAFTA reduced most trade barriers between the three countries.

"Our farmers are going to be so happy", Trump said. A draft fact sheet specified the content would be made in the United States and Mexico.

A Canadian Foreign Ministry spokesperson said earlier on Monday that Ottawa was encouraged by "progress" between the United States and Mexico, but cautioned any new version of NAFTA would need to be beneficial for Canada before being signed off on by officials.

Before the president's announcement, Lightizer and Mexican Secretary of Economy Idelfonso Guajardo walked together into the White House without talking to reporters.

The US trade representative's office officially described the agreement as "a preliminary agreement in principle.to update the 24-year-old NAFTA with modern provisions representing a 21st century". They then would either agree to a new 16-year deal or the pact would expire.

It's unclear if, and when, trilateral talks between Canada, the United States and Mexico would resume.

Trump hinted that a deal was near in a Saturday morning tweet.

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