Trump says he’s agreed on Mexico trade deal to replace NAFTA
By BloombergNews Business/Policy Canada Government Market news NAFTA Supply management Sustainability Trade United States
President Donald Trump said the U.S. is pursuing a new trade accord with Mexico to replace the North American Free Trade Agreement and called on Canada to join the deal soon or risk being left out.
Trump announced the agreement with Mexico in a hastily arranged Oval Office event Monday with Mexican President Enrique Pena Nieto joining by conference call. Pena Nieto said he is “quite hopeful” Canada would soon be incorporated in the revised agreement, while Trump said that remains to be seen but that he wanted those negotiations to begin quickly.
Canadian Foreign Minister Chrystia Freeland is leaving a trip in Europe early to travel to Washington for Nafta talks on Tuesday, spokesman Adam Austen said on Monday. Canada and the U.S. are still at odds over some key issues.
The U.S. and Mexico agreed to increase regional automotive content to 75 per cent from the current 62.5 per cent in NAFTA, with 40 per cent to 45 per cent of production by workers earning at least $16 an hour, the U.S. Trade Representative’s office said in an emailed statement. They agreed to review the deal after six years, softening a demand by the U.S. for a clause to kill the pact after five years unless it’s renewed by all parties. Duty-free access for agricultural products will remain in place, USTR said. | For the full story, CLICK HERE.
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