U.S., Mexico reach tentative trade deal that could replace NAFTA
The United States and Mexico have reached a tentative trade deal, which President Trump hopes will replace the North American Free Trade Agreement.
For more on this and other news around the world we turn to our Ro Aram….
Aram… Trump has frequently criticized NAFTA as hurting American jobs … what details do we know about the new deal.
Well Mark… the update announced on Monday focused mainly on the automotive industry.
Provisions include requiring a car sold in North America to be made up of at least 75 percent of parts made in the U.S. or Mexico.
The figure is currently just over 62 percent under NAFTA, and also includes Canada.
The new agreement also seeks to raise labor standards by requiring 40 to 45 percent of auto parts to be made by workers earning at least 16 U.S. dollars an hour.
The provision is designed to discourage carmakers to move jobs to lower-wage Mexico.
There's also said to be a sunset clause, in which the new agreement will last for 16 years, with a review every six years.
However, all this remains in doubt as a key NAFTA signatory, Canada, is yet to agree on the terms.
In his televised phone call with his Mexican counterpart, President Trump said he may seek a separate trade deal with Canada and even scrap the name NAFTA.
"I like to call this deal the United States-Mexico trade agreement. I think it's an elegant name. I think NAFTA has a lot of bad connotations for the United States because it was a rip off….. We will see whether or not we decide to put up a Canada - or just do a separate deal with Canada if they want to make a deal."
President Enrique Pena Nieto, however, expressed his desire for Canada to be integrated into the process.
Canada's foreign minister and NAFTA negotiator Chrystia Freeland is cutting short a trip to Europe to fly to Washington on Tuesday to try to restart talks.
For more on this and other news around the world we turn to our Ro Aram….
Aram… Trump has frequently criticized NAFTA as hurting American jobs … what details do we know about the new deal.
Well Mark… the update announced on Monday focused mainly on the automotive industry.
Provisions include requiring a car sold in North America to be made up of at least 75 percent of parts made in the U.S. or Mexico.
The figure is currently just over 62 percent under NAFTA, and also includes Canada.
The new agreement also seeks to raise labor standards by requiring 40 to 45 percent of auto parts to be made by workers earning at least 16 U.S. dollars an hour.
The provision is designed to discourage carmakers to move jobs to lower-wage Mexico.
There's also said to be a sunset clause, in which the new agreement will last for 16 years, with a review every six years.
However, all this remains in doubt as a key NAFTA signatory, Canada, is yet to agree on the terms.
In his televised phone call with his Mexican counterpart, President Trump said he may seek a separate trade deal with Canada and even scrap the name NAFTA.
"I like to call this deal the United States-Mexico trade agreement. I think it's an elegant name. I think NAFTA has a lot of bad connotations for the United States because it was a rip off….. We will see whether or not we decide to put up a Canada - or just do a separate deal with Canada if they want to make a deal."
President Enrique Pena Nieto, however, expressed his desire for Canada to be integrated into the process.
Canada's foreign minister and NAFTA negotiator Chrystia Freeland is cutting short a trip to Europe to fly to Washington on Tuesday to try to restart talks.