US, Mexico reach NAFTA deal, turn up pressure on Canada

US stocks surge to fresh records on NAFTA deal

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On Monday, the us and Mexico negotiated a new pact to replace NAFTA, snubbing Canada in the process.

Canada sends about 75 per cent of its exports to the United States so its economy could benefit if talks with the United States and Mexico lead to a trilateral trade deal.

Canada has publicly opposed such changes, but it's possible the United States and Mexico will make rapid concessions, since they're eager to get a deal done this week, so the ink can dry before a new Mexican president takes office. "And now it's a really good deal for both countries, and we look very much forward to it".

Trudeau spoke about the possibility of resolving a trade war last week, saying that he was "encouraged by the optimism expressed by the USA and Mexico", but added that "we also recognize that we will only sign a good deal for Canadians".

Canadian Prime Minister Justin Trudeau stressed in a phone call with Trump that the aim is to reach a new NAFTA deal. Any agreement between Mexico and the United States must also involve Canada, the other NAFTA signatory, although Trump suggested a deal with Canada could be separate from the U.S. -Mexico agreement.

Disputes between the United States and its trading partners have been a drag on investor sentiment for much of the year despite solid economic fundamentals and two robust quarters of corporate earnings.

Toronto Star correspondent Daniel Dale reacted to the developments on Twitter, writing of Trump: "It is very clear that he does not know what he's talking about and that he's making this up as he goes". The leftwing government of Canada, the other member of NAFTA, had refused to negotiate seriously, perhaps believing their friends in the progressive commentariat predicting Trump's demise.

"The bottom line here is the agreement would increase production costs, and that would increase costs for consumers", Casario said.

If you've ever attempted to have a Skype call with anyone over the age of 60, you understand the struggle.

"We are in regular contact with our negotiating partners, and we will continue to work toward a modernized NAFTA", Austen said.

"You know, they have tariffs of nearly 300 percent on some of our dairy products, and we can't have that", Trump said of Canada.

Auto manufacturing: The new deal would require that 75% of the parts in any vehicle sold in North America be produced in the United States or Mexico.

If ratified, the "preliminary agreement with Mexico", as the White House termed it Monday, would update the NAFTA rules governing trade between the two countries.

To break up the current three-country trade agreement, Trump would need approval from Congress, something he is unlikely to get.

"Canada handled that threat with prudent restraint, praising the U.S. -Mexico "progress" and offering to rejoin trilateral talks this week", the editorial praised.

"Canada, we will start negotiations shortly". Canadian leaders insist that they are in no hurry to renegotiate the pact or to agree to anything not in their favor.

The president-elect's designated chief NAFTA negotiator, Jesus Seade, who took part in the latest round of talks with the United States said that Peña Nieto's negotiators and the United States agreed to change language in the draft about energy that had been "cut and paste" from the text of the Mexican energy reform, but still preserved the same ideas and was consistent with the energy reform.

A major part of the agreement surrounds import taxes on cars.

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