US, Mexico reach new trade agreement

U.S. and Mexico make NAFTA breakthrough, increasing chances of final deal

Donald Trump has announced a trade "understanding" with Mexico that could lead to an overhaul of 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.

Earlier on Monday, Trump had tweeted about "A big deal looking good with Mexico".

Al Jazeera's Kimberly Halkett, reporting from Washington, DC, said Trump was "delivering" on promises made during his successful presidential campaign to renegotiate major trade deals affecting USA workers.

Mexican President Enrique Pena Nieto told Trump his country wants to incorporate Canada into the new trade agreement.

Trump says: "We could have a separate deal (with Canada) or we could put it into this deal."US president Donald Trump says he'll be "terminating" the North American Free Trade Agreement as he pursues a deal with Mexico and starts negotiations with Canada".

U.S. Trade Representative Robert Lighthizer said that if finalized and approved by Congress, the new trade agreement with Mexico would take effect in November, after a 90 day waiting period.

The breakthrough between the US and Mexico involved an agreement on the amount of North American content a vehicle must have in orderto pass duty-free across borders. Monday's bilateral agreement and the threat of auto tariffs could pressure Canada, which has warned it won't rubber stamp anything.

More news: Muslims celebrate Eid al-Adha as pilgrims conduct Hajj

Foreign Affairs Minister Chrystia Freeland is cutting short a diplomatic trip to Europe to re-enter the high-level talks in Washington on Tuesday. And it would require a set proportion of auto components be made by workers earning at least $16 an hour.

Once a U.S. -Mexico agreement is reached, Canada is expected to rejoin the negotiation. "We'll see what happens", Trump said, adding that Mexico's election was "better than anticipated". But what Trump's going for here is headlines saying he won ... and too many US media outlets will probably give him that.

The NAFTA talks have dragged on for more than a year.

"We are starting negotiations with Canada pretty much immediately", Trump said.

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. Currently, about 62% of parts are required to be produced in the United States, Mexico or Canada.

Markets are also happy about Monday's announcement because nothing is changing anytime soon.

Under the tentative new NAFTA agreement, vehicle companies that want to benefit from the free trade bloc will have to make more of an automobile's total worth in one of the three countries.

Footage of Trump attempting to connect the call went viral among journalists, pundits and political observers.

Related News:



Most liked

U.S. softens its demand for NAFTA 'sunset clause' - Mexican official
Lopez Obrador, a leftist populist who was elected in a landslide on July 1, said Friday that the NAFTA talks were proceeding well. The head of Mexico's biggest business chamber expects key advances in NAFTA talks with the U.S.in the next few days.

Mysterious Cyberpunk 2077 Livestream Kicks Off, Is Gameplay On Its Way?
There's still no release date set for Cyberpunk 2077 but it sounds like it's coming together pretty decently. He will talk your ear off about his favorite games which include The Last of Us and Hotline Miami.

Pak Asks US To "Immediately Correct" Statement On Imran Khan-Pompeo Call
Relations between the United States and Pakistan have been tense following U.S. That may surprise some of you, but they had a good call.

‘India seeks to continue importing Iran oil despite United States sanctions’
Despite the logistics changes, China , the largest Iranian oil buyer, has said it won't halt purchases as requested by the U.S. Refinery utilisation rates remained unchanged last week at 98.1% of total capacity, the highest rates since 1999.

Husband: British woman freed temporarily from Iranian prison
FREE NAZANIN CAMPAIGN Nazanin Zaghari-Ratcliffe's lawyer is hoping that the three days furlough can be extended. She has been told repeatedly that her case is linked to £300 million owed to Iran by Britain over...

Chris Hughton insists Brighton need to show quality at Liverpool
Raheem Sterling and Leroy Sane added pace to the wings and complimented the movement of Aguero, as they fed off each other, mustering 49 goals and 36 assists in the league last season.

US, China impose new round of tariffs
Trump with a sarcastic video posted on YouTube and other social media pages of its worldwide arm, China Global Television Network. The latest action completes the first round of duties on $50 billion in Chinese products that President Donald Trump targeted.

Trump Hits at South Africa for Allegedly Seizing Land from White Farmers
Yet returning to the theme on Thursday, Carlson defended his words from Wednesday's show and mocked the media response. South Africa's leading farming lobby group AgriSA on Thursday praised the government's "commitment to agriculture".

1 dead, multiple human cases of West Nile virus reported in MI
This is more likely to occur in those over 50 years of age and those with medical conditions or weakened immune systems. West Nile is usually spread between birds by mosquitoes, which can also spread the virus to humans and other animals.

Samsung Galaxy Note 9 India Launch Today
Consumers can avail cashback of Rs 6,000 via Paytm Mall or when they make a payment through HDFC bank credit and debit cards. The Samsung Upgrade Program will get you an upgrade bonus of Rs. 6000 if you are exchanging any of your old devices.

Sooners No. 7 in preseason AP poll, Cowboys unranked
This also represents the 60th time that Oklahoma has appeared in the preseason AP poll , second most behind Ohio State (65 times). While OSU opens at No. 5, it is the Wisconsin Badgers one spot ahead of them who take the top spot among B1G teams.

'Huge disaster': Over 800000 displaced in deadly Kerala flooding
Further, all police personnel of MP will donate 1 day's salary for the same objective : Madhya Pradesh DGP Rishi Kumar Shukla. The disastrous flood has claimed twenty-eight lives in Malappuram and 27 in Thrissur.

Federer to face Wawrinka in quarter-finals at rain-hit Cincinnati
The Romanian lost a title bid in Cincinnati in 2015 against Serena Williams and came up short a year ago to Garbine Muguruza. Djokovic completed his long recovery from elbow surgery by winning Wimbledon for the fourth time last month.

Maurizio Sarri: Chelsea not yet Premier League contenders
In that 15 minutes, we were not able to do this, so we were in trouble. I made a decision to change because we needed more in the middle.

U.S. pulls funding for Syria stabilization, citing allied cash
Most of the money was pledged by Rex Tillerson in February, but was put under careful examination after he was sacked in March. The Trump administration is ending funding for Syria stabilization projects as it moves to extricate itself from the conflict.