Trump Announces Trade Pact with Mexico

President Donald Trump announced the completion of a new trade agreement between the United States and Mexico on Monday.

Canada's foreign minister, Chrystia Freeland, spent most of her time on visits to the US lobbying governors and congressmen rather than talking seriously to our trade negotiators.

Trump has frequently condemned the 24-year-old NAFTA trade pact as a job-killing "disaster" for American workers.

Both the USA president and the Mexican president, Enrique Peña Nieto, said they had an understanding and thanked each other during a phone call listened into by reporters.

The U.S. and Mexico are close to resolving their NAFTA differences and may wrap up as soon as Monday, creating an opening for Canada to rejoin talks between countries that trade more than a trillion dollars annually. Trump's chief agricultural negotiator, Gregg Doud, said talks with Canada have been "really, really hard".

The United States and Mexico have reached an "understanding" on trade, U.S. President Donald Trump said Monday.

"We will only sign a new NAFTA that is good for Canada and good for the middle class", she said, adding that "Canada's signature is required".

Canada's Foreign Affairs Minister, Chrystia Freeland, said recently she was waiting on the USA and Mexico to resolve their differences on automotive rules of origin before returning to the table. The Mexican president said he wanted the former. "We'll get rid of the name NAFTA", Trump continued, adding that the name had a "bad connotation".

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The U.S. president also threatened America's northern neighbor with penalties if there is no agreement. But the countries still must resolve hard issues, including US complaints about Canada's protection for its dairy farmers and the way disputes are resolved under NAFTA. "It's going to come out", Seade said, Reuters reported.

The deal also requires companies to respect collective bargaining, which is the process by which trade unions can make labour agreements on behalf of workers, and requires that companies adhere to all applicable labour laws. Canada will now need to rejoin talks - the USA hadn't invited them for weeks - and sign off on the deal, as well as resolve its own irritants.

-Mostly-Canadian Things: The U.S. -Mexico negotiations have been bilateral talks on how a three-way pact would look. "It could end in one day and we take in a lot of money the following day", Trump said.

The president indicated his administration and Mexican officials will try to sell their Canadian counterparts on the details, but left open the door to one-on-one deals with both countries.

It's unclear if, and when, trilateral talks between Canada, the United States and Mexico would resume.

The U.S. and Mexico reached a bilateral agreement on key NAFTA issues including auto rules of origin and access to the Mexican energy sector, various news sources announced Monday.

The White House told Congress past year that it would renegotiate NAFTA, but never said it would start talks on an entirely new deal.

But the administration's own description calls the deal a "preliminary agreement in principle".

(Copyright © 2015. All Rights Reserved.)
 
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