Trump 'terminating' NAFTA, calling replacement US-Mexico Trade Agreement

Trump 'terminating' NAFTA, calling replacement US-Mexico Trade Agreement

Canada's NAFTA negotiator, Foreign Minister Chrystia Freeland, is cutting short a trip to Europe to fly to Washington Tuesday to try to restart talks.

Trump announced in a hastily arranged Oval Office event Monday that the signing a new trade accord with Mexico to replace the North American Free Trade Agreement, and he called on Canada to join the deal soon or risk being left out.

But after a year of intense negotiations to salvage NAFTA, US and Mexican negotiators are keen to seal a new deal before Pena Nieto hands power to President-elect Andres Manuel Lopez Obrador on December 1. "I think with Canada the easiest things we can do is tariff their cars coming in", Trump insisted.

Freeland is under increasing domestic pressure not to compromise. Asked about whether Mexico would be willing to sign a deal without Canada, a senior Administration official demurred, offering arguments for why the country might want to without saying that it would.

First of all, it does not appear that the USA and Mexico have actually concluded negotiations.

It would also require that 40 percent to 45 percent be made by workers earning at least US$16.

Shares of the largest U.S. automakers got a boost Monday after President Donald Trump said the USA and Mexico have reached an agreement on elements of NAFTA, marking a significant step toward reshaping the landmark trade deal. Sunset clause: The agreement will last for 16 years, and will be reviewed every six years. It also requires that 75 percent of the parts of cars sold in North America be produced in the United States or Mexico. He added that Trump wants to claim a "real victory" of Canada, Mexico and the US coming together with a trade deal in principle as the USA heads into the election.

"This wasn't created to put pressure on anybody", a senior administration official said, before later adding that the United States planned to submit its NAFTA renegotiation plans to Congress by the end of the week with or without Canada's agreement.

"We're going to call it the United States-Mexico Trade Agreement, and we'll get rid of the name NAFTA". Exports are responsible for more than 30 percent of the new jobs created in the state. Those changes are meant to encourage more auto production in the United States.

USA automakers have opposed raising the North American content requirement, but the United Auto Workers union has supported it.

Jimmy Carter, the 39th president of the United States, stressed the importance of the markets and worldwide trade to the American people, even as President Trump's use of tariffs has reduced - at least temporarily - global trade.

Mexican President Enrique Peña Nieto was on speakerphone and says he hopes NAFTA partner Canada will eventually be incorporated into the deal. Canada imposed tariffs on $12.5 billion of USA goods, including steel, toffee, maple syrup, coffee beans and strawberry jam. "If Canada is not in then we'll notify that we have an agreement with Mexico and we are open to Canada joining it", the official said.

Mr Trump would have to give Congress 90-days notice of his intention to terminate Nafta.

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