Mexico trade agreement sends markets to record highs

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US Trade Representative Robert Lighthizer said he expects Canada to sign on. The new deal, which does not yet include Canada, would dissolve the North American Free Trade Agreement, creating a new deal between the two countries. 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. "We'll see if Canada can be a part", of any deal, he said.

In a press release, The White House announced it has secured a preliminary agreement with Mexico that "modernizes and rebalances the trade relationship to reflect the realities of the 21st century".

Revamping trade deals with Mexico and Canada is not a bad thing, even if the president insists on scrapping the title of NAFTA altogether.

Trump's trade war with China caused American soybean prices to crash after China imposed a 20 percent tariff on the crop.

He says Canada will defend it.

"Canada has been isolated", he says. "The United States will benefit for that because we already have the lowest tariffs", Moore told CBN News.

The move, sought by the United States, puts Canada in a hard position because Prime Minister Justin Trudeau had insisted on maintaining Chapter 19 as a way to fight U.S. duties on softwood lumber, paper and other products that it views as unfair.

Peña Nieto said several times Monday that he hoped Canada could be incorporated in the deal.

"It's a big day for trade, it's a big day for our country", Trump said with reporters present, who were called to the Oval Office to watch as Trump spoke on the telephone with Mexican President Enrique Pena Nieto.

Statement from Senator John McCain
McCain was a frequent critic of Trump on everything from his leadership style to his Russian Federation policy. Embassy and at a monument by Truc Bach lake, where he landed after parachuting from his damaged plane.

"Frankly, a tariff on cars is the much easier way to go", said Trump. American businesses could easily divert their exports away from Canada if trade barriers increase, according to research carried out by ScienceDirect.

Although much could change in negotiating the final language and Canada's participation, these compromises would represent significant victories for Trump.

The Canadian foreign minister, Chrystia Freeland, cutting short a trip to Europe, was due in Washington on Tuesdayto start talks with U.S. trade negotiators, as pressure mounts on Ottawa to agree to join the agreement.

Trump's NAFTA approach was "straight from his Art of the Deal playbook", according to Paul Ashworth, chief U.S. economist at Capital Economics. The new deal could have a great impact on the Texas economy.

Meanwhile, the USA would be open to litigation from all sides, says Mr Lawrence. I think it's a good idea if they do. He also said he would "be terminating the existing [NAFTA] deal very soon" because NAFTA has "a lot of bad connotations" and has been a "bad deal" for the United States.

Media captionIf Nafta trade deal was a hamburger.

The deal with Mexico must be approved by the Republican-controlled Congress before its terms take effect.

For that to happen, US Congress must be notified 90 days in advance, which means the administration must send the notice by the end of the week.

"The Canadians really ought to look at what the USA and Mexico just completed as an example of what can be done if there is good faith negotiating and a willingness to compromise in the interest of both parties". We're not going to stand for that.

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