Trump's new trade deal with Mexico doesn't include Canada

Virginia Carson
August 27, 2018

Donald Trump has announced that America and Mexico have agreed terms on a new trade deal and said it will replace the North American Free Trade Agreement [Nafta].

In fact, on Monday Trump demonstrated this fact on live television ahead of his call with Mexico president, Enrique Peña Nieto.

Mexican Economy Secretary Ildefonso Guajardo cited unspecified "advances" following eight hours of talks Sunday with a team led by US Trade Representative Robert Lighthizer and President Donald Trump's son-in-law and senior White House adviser Jared Kushner.

An agreement between Mexico and the United States would open the door for Canada to return to the negotiations to rework the 1994 trilateral trade deal.

Canada, which is part of NAFTA, did not participating in the announcement.

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Capitol, meanwhile, remained at half-staff on Monday to honour the Arizona Republican, who died Saturday of brain cancer. Capitol on Friday, with another service taking place in Washington on Saturday, where former Presidents George W.

Negotiations on rewriting the three-country NAFTA agreement began about a year ago. However, while the US and Mexico have reached tentative agreement, they're working under a tight deadline, hoping to have things finalized before Mexican President-elect Andrés Manuel López Obrador is sworn in on December 1. Monday's bilateral agreement and the threat of auto tariffs could pressure Canada, which has warned it won't rubber stamp anything.

Read the full report at Fox News. But Mexico resisted a US demand that a per centage of the content of cars and trucks come from factories where workers are paid at least USA $16 an hour - a ploy to push factory jobs away from Mexico, where workers made just $4, and to the U.S.

But Mr Trump told Mr Nieto that he would continue to weigh the benefits of a separate deal with Canada. "It has a bad connotation because the United States was hurt very badly by NAFTA".

But at least initially, it looks like at least a tentative public-relations victory for Trump, the week after his former campaign manager was convicted on financial crimes and his former personal attorney implicated him in hush money payments to two women who say they had affairs with Trump.

"Essentially what this [deal] seems to do is update the 24-year-old agreement with respect, particularly, to the manufacturing sector, particularly when it comes to cars, an area that was decimated in many respects because of NAFTA", Halkett said.

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Revenues have improved in recent months, however, jumping 83 percent in the first quarter of 2018 to $2.2 billion (£1.7 billion). John Cooper, 69, died in his room, and his wife Susan, 63, a Thomas Cook employee, died a short while later in hospital.

The United States and Mexico have reached a preliminary agreement resolving key bilateral trade issues.

Negotiatons with Canada and the United States, Trump said, will start immediately.

Trump says that on Friday, the Mexican deal will go to the lawmakers. The U.S. wanted to bring back auto manufacturing jobs that had gone to Mexico. The recent push for a deal is in part to have it signed before the new president takes office in December.

Talks will resume at 9am (1300 GMT) Monday, Guajardo said. Trump flipped states like Michigan, Pennsylvania, and OH from Democrat to Republican in 2016 by promising economic prosperity in part by improving trade deals.

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The government pledged to "speed up the pace of land reform in a careful and inclusive manner that does not divide our nation". The State Department did not immediately respond to a request for comment about whether it has begun studying the issue.

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