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 8:56 PM
Updated: Aug 28, 2018 8:56 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.

Indiana Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 112626

Reported Deaths: 3520
CountyConfirmedDeaths
Marion20832759
Lake10292318
Elkhart6415109
St. Joseph6156102
Allen6029200
Hamilton4724109
Vanderburgh344530
Hendricks2673122
Monroe247436
Tippecanoe226913
Johnson2268123
Clark215056
Porter207845
Cass19329
Delaware188261
Vigo178123
Madison159575
LaPorte137739
Floyd131461
Howard128563
Kosciusko120217
Warrick119936
Bartholomew115357
Marshall98924
Dubois95418
Boone95146
Hancock91143
Grant89133
Noble89132
Henry77024
Wayne74414
Jackson7409
Morgan70038
Shelby66529
Daviess64427
Dearborn63228
LaGrange63111
Clinton59212
Harrison56024
Putnam53710
Lawrence50528
Montgomery50521
Knox5019
Gibson4854
White48114
DeKalb45611
Decatur45439
Miami4263
Fayette41813
Greene41835
Jasper3862
Steuben3707
Scott35610
Sullivan33012
Jennings31212
Posey3060
Franklin29925
Clay2935
Orange28524
Ripley2838
Carroll27013
Wabash2618
Washington2611
Starke2537
Whitley2526
Wells2482
Adams2453
Jefferson2443
Fulton2342
Huntington2223
Tipton21722
Spencer2153
Perry21413
Randolph2087
Jay1730
Newton17111
Owen1651
Martin1640
Rush1524
Pike1401
Vermillion1260
Fountain1182
Pulaski1151
Blackford1133
Crawford1030
Brown1023
Parke941
Benton880
Union770
Ohio767
Switzerland700
Warren391
Unassigned0225

Ohio Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 145850

Reported Deaths: 4635
CountyConfirmedDeaths
Franklin26242603
Cuyahoga17196644
Hamilton12850309
Montgomery7583152
Lucas7187358
Butler5727102
Summit5172249
Marion307247
Mahoning3002279
Warren294748
Stark2771168
Pickaway263444
Lorain227786
Delaware216620
Fairfield203850
Columbiana192180
Licking187562
Trumbull1852131
Clark175938
Wood173772
Clermont165520
Lake158649
Medina143939
Allen138869
Miami138049
Greene137632
Portage109466
Mercer107717
Tuscarawas91620
Erie91244
Wayne90866
Ross86123
Richland80819
Madison78712
Darke76839
Belmont71227
Geauga70547
Hancock67410
Ashtabula65148
Athens6292
Lawrence61618
Shelby5909
Auglaize5709
Putnam55823
Sandusky55520
Huron5337
Union5002
Scioto4746
Ottawa46630
Seneca45314
Preble42213
Muskingum3802
Holmes3777
Jefferson3284
Logan3013
Henry30012
Champaign2943
Perry2889
Defiance28710
Clinton28213
Brown2812
Knox28015
Morrow2522
Washington25123
Hardin25013
Fulton2371
Jackson2344
Coshocton23111
Crawford2276
Fayette2266
Ashland2244
Highland2203
Wyandot20212
Williams2013
Gallia18612
Meigs17210
Pike1670
Hocking1619
Guernsey1578
Carroll1517
Adams1234
Van Wert1143
Monroe10918
Paulding1050
Harrison622
Morgan470
Vinton453
Noble270
Unassigned00
Fort Wayne
Overcast
61° wxIcon
Hi: 78° Lo: 52°
Feels Like: 61°
Angola
55° wxIcon
Hi: 78° Lo: 52°
Feels Like: 55°
Huntington
Clear
56° wxIcon
Hi: 77° Lo: 51°
Feels Like: 56°
Decatur
Clear
54° wxIcon
Hi: 78° Lo: 53°
Feels Like: 54°
Van Wert
Clear
54° wxIcon
Hi: 79° Lo: 52°
Feels Like: 54°
Mostly Sunny Thursday
WFFT Radar
WFFT Temperatures
WFFT National

Community Events