Trump announces trade deal with Mexico

https://www.bbc.com/news/business-45323634

The US and Mexico have reached common ground on key trade terms as pressure mounts to complete renegotiation of the North American Free Trade Agreement.

US President Donald Trump, a frequent critic of the existing deal, announced the apparent breakthrough on Monday.

The final outcome remained in doubt as Canada, the third country in the treaty, has not signed off.

The development follows about a year of talks triggered by Mr Trump, who had threatened to pull out of the pact.

He demanded renegotiation of the 1994 trade agreement, which he blames for a decline in US manufacturing jobs, especially in the auto industry.

In a televised appearance at the White House, Mr Trump said the US and Mexico had agreed on terms that would make for an “incredible” deal that was “much more fair”.

US officials said they expected to resume talks shortly with Canada, which has not participated in the discussions in recent weeks.

But Mr Trump also said he is not committed to a three-country agreement and would be willing to strike separate, bilateral deals.

https://www.rt.com/business/437033-us-mexico-deal-pressure-canada/

The news forced Canadian officials to rapidly arrange a meeting with their US partners. Canadian Foreign Minister Chrystia Freeland reportedly cut short her diplomatic trip to Europe to go to Washington on Tuesday for trade talks. A spokesman for the foreign minister said Canada will sign the new accord only if it is good for the country.

Under the current conditions, Ottawa essentially faces a take-it-or-leave-it offer, which is based on the US-Mexico trade pact. Though details of the new agreement are still unclear, it will predictably become less profitable for Canada than under NAFTA, which was condemned by the US president as the “single worst deal ever approved.”

Though the US and Canada have traditionally enjoyed good trading relations, some 75 percent of Canada’s exports are reportedly bound for the US with only 15 percent of American exports destined for Canada. American businesses could easily divert their exports away from Canada if trade barriers increase, according to research carried out by ScienceDirect. Moreover, Trump has threatened to impose tariffs on imports of Canadian-made vehicles if Ottawa doesn’t relent.

“I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in. It’s a tremendous amount of money and it’s a very simple negotiation. It could end in one day and we take in a lot of money the following day,” said Trump.

The draft deal reached by the US and Mexico boosted American stocks to record highs on Monday.

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and what happened to canadia?..typo on purpose..its an aussie joke.. 🙂

justin left out in the cold..

“Ottawa essentially faces a take-it-or-leave-it offer, which is based on the US-Mexico trade pact. Though details of the new agreement are still unclear, it will predictably become less profitable for Canada than under NAFTA, which was condemned by the US president as the “single worst deal ever approved.”

401

~ by seeker401 on August 30, 2018.

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