U.S., Mexico Reach Trade 'Understanding' That Could Lead To NAFTA Overhaul

Ford Kentucky Truck Plant

Ford Kentucky Truck Plant

The United States, Mexico and Canada do more than 1 trillion dollars in trade between them every year.

Stocks are rising broadly as the USA and Mexico prepare to announce the details of the new trade agreement.

He added he plans to terminate the existing trade agreement and instead replace it with the deal reached with Mexico, and potentially Canada.

But some industry groups said they wanted more clarity on final terms before celebrating the deal.

President Donald Trump had pulled the USA out of the NAFTA pact claiming it was unfair to Americans.

The U.S. push to finish NAFTA talks comes at the same time it's in a spiraling trade war with China, and has threatened to place tariffs on cars imported from major manufacturing centers in Asia and Europe - efforts that have created new uncertainty for many businesses and investors.

Canada would 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.

The Bank for International Settlements (BIS), a group owned by 60 central banks, found that if tariffs and other trade barriers shift to international norms, Canada's GDP would shrink by 2.2 per cent, compared to declines of 1.8 per cent for Mexico and 0.22 per cent for the United States.

US law requires a three-month waiting period after a deal is completed before Congress can ratify it. Mexico will swear in its incoming president, Andrés Manuel López Obrador, on December 1.

Asia Argento Paid Off Her Own Sexual Assault Accuser
Weinstein has been accused of sexual misconduct and harassment by dozens of women, some of whom also have accused him of rape. The news hit headlines around the world on Monday, and McGowan took to Twitter to seemingly distance herself from her pal.

Matt Blunt, president of the American Automotive Policy Council, which represents General Motors Co, Ford Motor Co and Fiat Chrysler Automobiles NV, said the group was optimistic about the new deal, though it was still reviewing the details.

Still, an accord between the US and Mexico is the biggest development in talks that began a year ago, punctuated by Trump's repeated threats to quit altogether.

Rather, it would be a sub-deal that will now be folded into the ongoing three-country talks over the future of NAFTA.

Trump said the USA has yet to begin negotiations with Canada.

Mr. Peña Nieto said Mr. Lopez Obrador and Mr. Trump would all toast with a shot of tequila at a signing ceremony for the deal. "There are still issues with Canada but I think they could be resolved very quickly", a senior official told Reuters.

Trump made the comments after announcing an "understanding" with Mexico that could lead to an overhaul of the 24-year-old trade pact, which Trump has called a job-killing "disaster". Canada, so far, has been excluded from the talks as Mexico and the USA resolve their issues. Autoworkers and farmers must be taken care of or there will be no deal. "It has a bad connotation because the United States was treated very, very badly for NAFTA".

He says it will mark the end of the NAFTA name. Canada has been on the sidelines for the last month, as the USA and Mexico have tried to work through their problems. Perhaps as a hardline negotiating tactic, the president also suggested that the United States might hike tariffs on Canadian cars in response, a move that analysts with CIBC markets reported in July could cut Canada's vehicle exports to the U.S. almost in half, and could throw the manufacturing province of Ontario into recession.

MSCI's gauge of stocks in 47 countries across the globe gained 0.91 per cent, helped by gains in developed markets from the U.S.to Europe and Asia. Negotiators also agreed to increase the percentage of vehicles built in factories paying an average wage of at least $16 an hour.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.