Published: Tue, August 28, 2018
Money | By Ethel Goodwin

NAFTA changes could have oversized impact on Washington

NAFTA changes could have oversized impact on Washington

A spokesman for Freeland said on Monday that Canada would only sign a new agreement that is good for the country.

The trade understanding between the us and Mexico announced by President Donald Trump Monday sets into motion a series of events that could lead to an overhaul of the North American Free Trade agreement. "And I assume that they are going to carry out negotiations on the sensitive bilateral issues between Canada and the United States", the Mexican president said. Moran said he was pleased by the deal but insisted Trump needs to re-engage with Canada, calling it the top export market for Kansas.

"This is something very positive for the United States and Mexico", Pena Nieto replied, saying he is looking forward to toasting Trump with tequila to celebrate, expressing to his American counterpart that he is "really grateful and greatly recognize and acknowledge your political will in all of this". For his part, Peña Nieto repeatedly mentioned his hopes for Canada now returning to the negotiating table, with the aim of incorporating this new U.S. -Mexico understanding into an updated three-nation NAFTA.

Mexican President Enrique Pena Nieto wants to sign the agreement before leaving office at the end of November, and Trudeau faces a national election expected by October 2019.

It's unclear when Canada will re-enter trade talks with the USA and Mexico.

President Trump won a major victory on trade on Monday, supplanting the North American Free Trade Agreement (NAFTA) and replacing it with something far more beneficial.

"Kansas farmers and ranchers continue to struggle with low commodity prices, made worse by retaliatory tariffs against USA agricultural exports", said Sen.

Trump said in a press conference on Monday that negotiations with Canada would begin "almost immediately", now that discussions with Mexico are coming to a close.

They'll have to use more local steel and aluminum.

US economic data - with latest estimates for second-quarter gross domestic product expected on Wednesday - could determine the dollar's further moves. It's also a win for Mexico.

For months, the talks were held up by the Trump administration's insistence on a "sunset clause": A renegotiated NAFTA would end after five years unless all three countries agreed to continue it. Mexico and Canada considered that proposal a deal-killer. Both U.S. and Mexican officials said Monday they are now focused on Canada. "Unfortunately, we didn't have simultaneous translation for the English to the English because the president made not a whole lot of sense there".

Canada - which Trump had previously threatened with possible tariffs on cars coming to the United States - was notably absent from the agreement.

Indeed, Freeland's office quickly announced that she is flying to Washington tomorrow, cutting short a European trip, for NAFTA talks.

However Trump has said he could still put tariffs on Canadian made cars if it refuses to agree to the new deal and also wants concessions on the country's dairy products. US trade officials described the agreements reached over the weekend with Mexico as a big improvement over the current free trade pact between the three countries. "When I'm in Congress, I will fight for truly free and fair trade deals and not just let my party leadership do the talking".

"But one way or the other, we have a deal with Canada". Canadian Prime Minister Justin Trudeau has not ruled out giving up a sliver of the market, as Canada has done in previous trade deals.

Critics denounced the prospect of cutting Canada out a North American trade pact, in part because of the risks it could pose for companies involved in global trade. "Canada's signature is required", he said. It also mandates 40 percent to 45 percent of content will be made by workers earning at least $16 an hour.

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