President Trump Announces Renaming, Overhaul to NAFTA in 'Fairer' Deal with Mexico

President Trump Announces Renaming, Overhaul to NAFTA in 'Fairer' Deal with Mexico

President Trump Announces Renaming, Overhaul to NAFTA in 'Fairer' Deal with Mexico

President Trump's ability to secure a major victory in his trade agenda could hinge on whether Canadian Prime Minister Justin Trudeau will go along with his controversial approach, as many USA lawmakers are insisting on Canada's participation before they approve any deal. But the agreement itself will mean little without Canada or congressional approval.

"This is something that is very special for our manufactures and our farmers", Trump said. But "it isn't like Canada is coming in at the last minute", another official said.

Canadian Prime Minister Justin Trudeau stressed in a phone call with Trump that the aim is to reach a new NAFTA deal.

Mexico's incoming president-elect Andrés Manuel López Obrador, who takes office in December, has been critical of the energy reform and has vowed to review the contracts that foreign firms have already signed with Mexico.

Auto stocks soared and the S&P 500 and the Nasdaq rallied to record highs on the expectation that Canada would sign onto the deal and ease the economic uncertainty caused by US President Donald Trump's repeated threats to ditch the 1994 accord.

Canada hasn't participated in the renegotiations for two months.

Trump backed off from an initial US demand for a "sunset" clause that would kill the pact unless it was renegotiated every five years and which businesses said would stymie long term investment in the region.

Freeland is under increasing domestic pressure not to compromise. Among the negotiations was a United States push to increase the percentage of a vehicle that had to be sourced from a NAFTA nation to move freely across the border of the three NAFTA nations.

"It's been too one-sided for too many years, for too many decades and so it's not the right time to talk", he says, "But eventually, I'm sure that we'll be able to work out a deal with China".

"Canada's signature is required".

Trump however said he wanted to drop the name NAFTA, saying it had "bad connotations" because the United States had been hurt by the agreement.

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

He said the agreement with Mexico is "good for both countries".

For the first time, said Gov. Jeff Colyer, the agreement with Mexico will address agricultural biotechnology.

"The accelerated timeline to reach agreement with Canada over the next week presents a risk to the finalization of the deal", Raymond James analyst Ed Mills wrote in a note.

Trump has presented this as a bilateral deal and threatened Canada with auto tariffs. The U.S. neighbor to the north has been on the sidelines while the U.S. negotiated with Mexico. If the parties don't come up with a renewal, the agreement would end in 10 years.

Trump announced the deal from the White House on Monday, calling it a "big day for trade".

The agreement has some key changes for the auto, farming and textile industries but is short on the detailed text typical among nations before an agreement is signed, experts said. This has to do - they used to call it NAFTA. But no further details were available.

USA automakers have opposed raising the North American content requirement, but the United Auto Workers union has supported it.

But the changes in labor rules may raise costs for consumers. It will be hard to enforce without Canada's participation in a trilateral agreement, given various supply-chain complications.

The preliminary agreement with Mexico includes an option to renegotiate in six years and extend for an additional 16 years.

The pact also requires greater use of US and Mexican steel, aluminum, glass and plastics.

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