Reuters: U.S., Mexico reach NAFTA deal, turn up pressure on Canada
WASHINGTON (Reuters) - The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to new terms on auto trade and dispute settlement rules to remain part of the three-nation pact.
Auto stocks soared and the S&P 500 and the Nasdaq rallied to record highs on the expectation that Canada would sign onto the deal and ease the economic uncertainty caused by U.S. President Donald Trump’s repeated threats to ditch the 1994 accord.
Details of gains and concessions in the deal were only starting to emerge on Monday. Trump threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbors and warned he expected concessions on Canada’s dairy protections.
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WNU Editor: Both Mexico and the U.S. got what they wanted. Mexico's agricultural sector can still export goods to the U.S. duty free .... a big win for Mexico that now protects millions of jobs, and the U.S. got what it wants, lessening the wage advantage that Mexico has on goods being manufacture in Mexico destined to U.S. markets, and stopping other countries from using Mexico as a transit point to ship goods to the U.S.. As for Canada .... in my opinion Canada has been betrayed by Mexico after they had promised that they would not come to an agreement with the U.S. without Ottawa's participation.
Update: Sadly (from a Canadian perspective), this is correct .... Justin from Canada Painted His Country Into a Lose/Lose Trade Corner – More Details of U.S-Mexico Deal… (The Last Refuge). More details on the U.S. - Mexico agreement are here .... 'A big day for trade': U.S., Mexico reach deal to replace NAFTA (Financial Post).
More News On The U.S. And Mexico Reaching An Agreement On NAFTA
US and Mexico tentatively set to replace NAFTA with new deal -- AP
US, Mexico finalize trade pact; Canada to rejoin talks Tuesday -- AFP
Trump announces agreement with Mexico on NAFTA overhaul -- The Hill
Trump announces US-Mexico trade deal, setting stage for Nafta overhaul -- The Guardian
Donald Trump announces trade deal with Mexico, says he will ditch Nafta name -- SCMP/Bloomberg
US and Mexico agree on NAFTA revamp, Canada 'encouraged' -- DW
Trump announces 'incredible' trade deal with Mexico -- BBC
Donald Trump terminating NAFTA trade deal, negotiating with Canada -- ABC News Online
US, Mexico reach NAFTA deal as attention turns to Canada -- Al Jazeera
3 comments:
Lets be honest, Obama would never have renegotiated NAFTA. Could have but wouldn't because he and his party are bound by some many conflicting special interest groups in environmental, labor, gender, race, business, etc that a deal would take many years and too much trouble. Trump is laser focused on returning manufacturing to the US and reducing trade imbalances.
On Canada; wake up and smell the coffee. Trade should be fair and Trump is calling you on your bluff (act).
I campaigned against NAFTA when it was up for adoption by the US Congress in the early 1990's. I doubt that Mexican workers consider the wage differential an "advantage" since it meant they could only live in slums with no running water or electricity.
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