US and Mexico reach a preliminary trade deal that could replace NAFTA

The United States and Mexico have reached an agreement to change parts of NAFTA, the trade deal that Preside...

Posted: Aug 28, 2018 7:56 PM
Updated: Aug 28, 2018 7:56 PM

The United States and Mexico have reached an agreement to change parts of NAFTA, the trade deal that President Donald Trump has derided for years as unfair.

Trump announced the agreement from the Oval Office Monday, with Mexican President Enrique Peña Nieto dialed in on a conference call.

Business, economy and trade

Continents and regions

Latin America

Mexico

North America

The Americas

Trade and development

United States

International trade

Donald Trump

Political Figures - US

Canada

Economic policy

Economy and economic indicators

International trade law

Tariffs and customs

Trade regulation and policy

Government and public administration

Government bodies and offices

US federal government

White House

Free trade treaties and agreements

International relations

International relations and national security

Trade treaties and agreements

Treaties and agreements

But the deal left open the question of whether Canada, the third country in NAFTA, would agree to the changes -- and Trump himself said he wanted to throw out the name NAFTA altogether.

"They used to call it NAFTA," Trump said. "We're going to call it the United States-Mexico trade agreement. We're going to get rid of NAFTA because it has a bad connotation."

US Trade Representative Robert Lighthizer said the agreement was "absolutely terrific" and would modernize a trade deal that had "gotten seriously out of whack." He said he hoped Congress would approve it with broad bipartisan support.

On a separate call with reporters, Lighthizer highlighted some big changes that negotiators from both countries agreed to.

  • Auto manufacturing: The new deal would require that 75% of the parts in any car sold in North America be produced in the United States or Mexico. Currently, about 62% of parts are required to be produced in the United States, Mexico or Canada.
  • Higher labor standards: The new deal would require that 40% to 45% of auto parts in cars sold be made by workers earning at least $16 USD per hour.
  • Sunset clause: The agreement will last for 16 years, and will be reviewed every six years.

Much of the business world has been worried about Trump's trade policies, and the stock market reacted positively to the news of a deal. The Dow closed nearly 260 points higher on Monday.

The agreement between the two countries could restart negotiations on NAFTA with all three parties -- the United States, Mexico and Canada.

Despite Trump's signal that the deal could lead to a bilateral trade agreement between the United States and Mexico, Peña Nieto, through a translator, expressed his "desire that now Canada will also be able to be incorporated in this."

Mexico and Canada have stood firm on the importance of maintaining the trilateral format of the NAFTA free trade deal, even as Trump has signaled a desire for individual deals with each country.

"Canada is encouraged by the continued optimism shown by our negotiating partners," said a spokesperson for Canadian Minister of Foreign Affairs Chrystia Freeland.

"Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement," he said.

Freeland will travel to Washington on Tuesday to continue negotiations.

Negotiations on rewriting the three-country NAFTA agreement began about a year ago.

The 24-year-old trade agreement generally prevents the three parties from imposing tariffs on imports from one another. But Trump has called the agreement "the worst deal maybe ever signed" and moved ahead with tariffs earlier this year.

In May, the United States imposed steep tariffs on steel and aluminum from much of the world, including Mexico. In response, Mexico slapped tariffs on $3 billion of US goods, including steel, pork, apples, potatoes, bourbon and different types of cheese. Canada imposed tariffs on $12.5 billion of US goods, including steel, toffee, maple syrup, coffee beans and strawberry jam.

Huntsville
Overcast
64° wxIcon
Hi: 80° Lo: 65°
Feels Like: 64°
Florence
Broken Clouds
63° wxIcon
Hi: 82° Lo: 67°
Feels Like: 63°
Fayetteville
Overcast
61° wxIcon
Hi: 80° Lo: 64°
Feels Like: 61°
Decatur
Broken Clouds
61° wxIcon
Hi: 82° Lo: 64°
Feels Like: 61°
Scottsboro
Overcast
63° wxIcon
Hi: 80° Lo: 66°
Feels Like: 63°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 134231

Reported Deaths: 2357
CountyConfirmedDeaths
Jefferson19676351
Mobile13373292
Montgomery8834184
Tuscaloosa8621118
Madison788178
Shelby597849
Lee589760
Baldwin547750
Marshall394343
Calhoun351544
Etowah349045
Morgan329228
Houston290321
Elmore266748
DeKalb241621
St. Clair232235
Walker231684
Talladega216629
Limestone210120
Cullman189920
Dallas179026
Franklin177129
Autauga176425
Russell17603
Lauderdale171333
Colbert164626
Blount161115
Escambia160824
Chilton158530
Jackson157511
Covington140127
Dale138644
Coffee13486
Pike119810
Chambers116442
Tallapoosa116085
Clarke109116
Marion96429
Butler91239
Barbour8827
Winston74412
Marengo72020
Pickens66214
Bibb65410
Lowndes65327
Randolph64713
Hale63528
Geneva6254
Lawrence62023
Cherokee60813
Bullock60414
Monroe5898
Clay5858
Washington55713
Perry5416
Crenshaw53732
Conecuh53511
Wilcox53111
Henry5055
Macon48018
Fayette4578
Sumter43819
Cleburne3805
Lamar3672
Choctaw34712
Greene30315
Coosa1713
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 190891

Reported Deaths: 2374
CountyConfirmedDeaths
Shelby30755458
Davidson26474306
Hamilton944394
Knox937879
Rutherford929389
Williamson525236
Sumner481998
Wilson347645
Putnam331540
Montgomery307044
Unassigned29495
Bradley293417
Out of TN289627
Madison287764
Sevier262315
Blount251624
Maury236124
Washington229736
Robertson221035
Sullivan216433
Hamblen191426
Tipton181819
Gibson165823
Trousdale16577
Hardeman157026
Wayne14975
Dyer137014
Bedford134517
Dickson125715
Coffee123613
Cumberland120118
Weakley118919
Fayette118819
Henderson118124
Anderson117913
Loudon11726
Obion117110
Carter116828
Greene115644
Jefferson111914
McMinn111925
Warren10617
Macon105521
Lawrence104313
Monroe103618
Hardin103016
Lauderdale98316
Franklin9699
Haywood96921
Lake9192
Roane8954
Carroll88920
McNairy88318
Bledsoe8544
White8379
Rhea83412
Hawkins81218
Cheatham80710
Marshall7565
Cocke7469
Overton7456
Smith72311
Johnson7112
Chester63210
Henry6259
Lincoln6191
Giles60717
Hickman5858
DeKalb56614
Crockett53819
Marion5298
Decatur5207
Fentress5053
Campbell4464
Claiborne4425
Polk38810
Grainger3763
Union3591
Benton3369
Jackson3265
Morgan3173
Grundy2915
Cannon2860
Unicoi2861
Humphreys2513
Sequatchie2332
Clay2265
Meigs2263
Houston2203
Scott2142
Stewart2042
Lewis2011
Moore1751
Van Buren1660
Perry1500
Pickett1162
Hancock1063

Community Events