United States and Mexico reach a preliminary trade deal

United States and Mexico reach a preliminary trade deal

The 93-year-old acknowledged that while Trump's approach differs from previous presidents, he believes that the US will be able to renegotiate the North American Free Trade Agreement with Canada and Mexico.

"Maybe NAFTA has to be rewritten, but we have to have a good working relationship", Basta said.

Details of gains and concessions in the deal were only starting to emerge on Monday.

But Trump again denounced Canadian dairy import quotas and tariffs and threatened levies on Canadian cars unless the dairy system is dismantled.

"We could have a separate deal (with Canada) or we could put it into this deal", Trump told reporters in the Oval Office. It's a tremendous amount of money and it's a very simple negotiation.

But Trump also said that he wanted the name of the 25-year-old treaty to be changed because it had "negative connotations", and admitted that talks with Canada might not be easy. Now, the US could use its new tariffs on lumber as a negotiating tool to provide leverage in that dispute. Both currencies gained against the United States dollar after Monday's announcement.

On Monday after several months of escalating rhetoric on the part of Mr Trump and murmurings of a trade war, the U.S. president announced he had reached "a really good deal" with Mexico, after engaging in one-on-one talks for the past five weeks.

South of the boarder, the reaction was more subdued as the office of Mexican President Enrique Peña Nieto released a statement saying the two nations have "reached an understanding on the main issues of importance for both countries". Canadian Foreign Minister Chrystia Freeland left a trip in Europe early to travel to Washington for trade talks Tuesday.

"We will only sign a new NAFTA that is good for Canada and good for the middle class".

"It is our wish, Mr. President, that now Canada will also be able to be incorporated in all this", he said on the phone.

Michael Kergin, Canada's former ambassador to the United States, who said a lot of what has been agreed between the us and Mexico is in line with what Canada originally pushed for.

"Our farmers are going to be so happy", Trump said.

Senior administration officials also made clear on a call with reporters Monday afternoon that they were still pursuing a revised NAFTA trade agreement, though they maintained the possibility of a bilateral deal between the USA and Mexico if a trilateral deal with Canada can not be reached. A spokesman for the foreign minister said Canada will sign the new accord only if it is good for the country.

"I think we had a NAFTA agreement that had gotten seriously out of whack, that had led to large trade deficits and that needed updating", Lighthizer said.

How does the new deal compare to the original NAFTA? Much of the trade pact dealt with auto manufacturing, as Detroit has increasingly seen jobs shipped south of the border where workers earn an average of $7.34 an hour making cars and $3.41 an hour in auto parts suppliers.

He said it would be replaced in part by the newly named United States-Mexico Trade Agreement.

The provision is created to discourage carmakers to move jobs to lower-wage Mexico.

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