The U.S. And Mexico Have Teamed Up To Cheat Canada

The U.S. And Mexico Have Teamed Up To Cheat Canada

The U.S. And Mexico Have Teamed Up To Cheat Canada

The United States and Mexico reached a deal on Monday to change the North American Free Trade Agreement (NAFTA) and talks with Canada were expected to begin immediately, U.S. President Donald Trump said.

But compared to the more dire possibilities-that Mr. Trump would pull the USA out of Nafta or, lacking congressional approval of that, impose high tariffs on Mexican and Canadian goods that would render the agreement obsolete-the possibility of renegotiation counts as a relief.

President Donald Trump made the announcement from the Oval Office.

The agreement between the two countries could restart negotiations on NAFTA with all three parties - the United States, Mexico and Canada.

Mexican President Enrique Pena Nieto spoke to Trudeau on Monday and urged Ottawa to rapidly rejoin the talks with the goal of getting a final NAFTA rewrite this week.

Trump says he will be calling Prime Minister Justin Trudeau.

The negotiations are aimed at ironing out bilateral issues and then finalizing the new agreement with Canada, the third NAFTA partner.

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The Mexico-U.S. discussions have focused on crafting new rules for the automotive industry, which Trump has put at the heart of his drive to rework the pact he has repeatedly described as a "disaster" for American workers.

A senior administration official indicated the White House plans to submit a letter to Congress on Friday notifying the legislature of the President's plans to sign a new trade deal, with or without Canada's agreement.

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. Canada still needs to join the agreement, and any deal would need to be approved by Congress before it can go into effect. A key element of the US-Mexico talks has been content requirements for autos, which Mexico reportedly agreed to increase to 75 percent from North America to get duty free NAFTA treatment.

The United States, Mexico and Canada do more than 1 trillion dollars in trade between them every year. He said the USA, which wants Canada to loosen its protection of the supply-managed dairy industry, has not had "market access conversations with Canada of any substance". "I think NAFTA has a lot of bad connotations for the United States because it was a rip off". "Canada's signature is required", spokesman Adam Austen said.

"For some time now, (Trump) has been very prudent in referring to Mexicans, or he hasn't said offensive things", Lopez Obrador said.

Talks to update NAFTA began a year ago, but in recent weeks have been held between just the US and Mexico. The recent push for a deal is in part to have it signed before the new president takes office in December. Other key issues are Chapter 19 anti-dumping panels, which the USA 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.

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