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

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

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

But in recent weeks, Washington and Mexico City made a decision to tackle their own bilateral issues first.

The more immediate question, though, is whether Trump really can seal a two-way deal with Mexico and shrug Canada off.

Senior administration officials pointed to the deal as making both America and Mexico better off.

"[And] if they'd like to negotiate fairly, we'll do that", Trump said.

The deal would require 75 per cent of auto content to be made in the Nafta region, up from the current level of 62.5 per cent, a USA trade official said. That could even be good news for auto workers in Canada and the U.S.

The US-Mexico discussions focused on crafting new rules for the automotive industry - which Mr Trump has put at the heart of his drive to rework trade pact (which he has repeatedly called a "disaster") for American workers.

Negotiations on rewriting the three-country NAFTA agreement began about a year ago.

The US presidents said he meant to terminate NAFTA while he pursues trade deals with Mexico and starts negotiations with Canada.

"I told him it was important that (Canada) rejoin the process, with the goal of concluding trilateral negotiations this week".

The Journal went onto bash the Trump agreement for stripping "current protections from most US investors in Mexico".

NAFTA reduced most trade barriers between the three countries. It will raise prices on Mexican-built cars and lead to higher prices in the United States, Autotrader analyst Michelle Krebs told the Detroit Free Press.

But Jerry Dias of the Canadian auto workers union said what's on the table "is a good start" and "significant". "So if they had to compromise on energy, so be it". "It's not part of a negotiating strategy", said one administration official.

The new deal will keep tariffs on agricultural products traded between the United States and Mexico at zero and seeks to support biotech and other innovations in agriculture.

Despite the administration's triumphant tone on Monday, there are numerous legal, legislative, and economic problems with the proposal.

Kerr says Washington state exports $10 billion a year in goods and services to Canada.

The president-elect's designated chief NAFTA negotiator, Jesus Seade, who took part in the latest round of talks with the United States said that Peña Nieto's negotiators and the United States agreed to change language in the draft about energy that had been "cut and paste" from the text of the Mexican energy reform, but still preserved the same ideas and was consistent with the energy reform. Peña Nieto reiterated on Twitter his desire for a full update of NAFTA, rather than a bilateral trade deal.

"But what he went on to describe seemed like more of a rebrand than a revolution", says Krishnadev Calamur at The Atlantic, and the end result will likely be "some tweaks to the existing agreement".

A statement released by the Prime Minister's Office confirmed Trudeau and Pena Nieto spoke on Sunday and that the leaders "shared their commitment to reaching a successful conclusion to this agreement for all three parties".

But the president made one final error as the conversation ended, telling reporters that it signified a new trade deal with Canada. "The Congress, and only the Congress, can agree to the termination of Nafta by the United States".

Trump imposed a Friday deadline for Canada to come on board, which is when the administration plans to give Congress its mandatory 90-day notification of the new trade deal. Before the afternoon was out, Freeland was on her way to Washington in her capacity as minister responsible for the NAFTA renegotiation.

In fact, the announcement immediately ran into pushback in Mexico.

U.S. Trade Rep. Robert Lightizer and Mexican Secretary of Economy Idelfonso Guajardo walked together into the White House without talking to reporters.

Duty-free access to farm products will also stay in the deal, and Mexico agreed to immediately start buying as many US farm products as possible. Two-way trade between the United States and Canada, at $673 billion past year, is larger than that between the United States and Mexico, which came to $616 billion.

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