Trump announces 'really good' NAFTA deal with Mexico

4 takeaways from the U.S.-Mexico trade deal

Trump announces 'really good' NAFTA deal with Mexico

U.S. stock indexes hit fresh records Monday as the United States and Mexico struck a tentative a bilateral trade deal that's expected to replace the 24-year old North American Free Trade Agreement.

President Donald Trump, right, arrives in the Oval Office for a telephone call with Mexican President Enrique Pena Nieto on August 27, 2018.

Mexican President Enrique Pena Nieto wants to sign the agreement before leaving office at the end of November, and Canadian Prime Minister Justin Trudeau faces a national election expected by October 2019.

Trump strongly campaigned on the issue of repealing or completely redoing NAFTA, a trade deal he argues was "terrible" for the United States and destroyed manufacturing in states across the country.

Donald Trump's attempts to get the Mexican president on speakerphone to celebrate a new trade deal descended into farce thanks to technical glitches.

Freeland's spokesman Adam Austen said, "We will only sign a new NAFTA that is good for Canada and good for the middle class". The deal resolves several thorny debates between the us and Mexico including how much of a car's content needs to be made in the region to qualify for tariff exemption, the minimum wage for some autoworkers and how to treat Mexico's energy sector, which was closed to USA investment when NAFTA was first drafted. He also suggested he might drop the name NAFTA altogether, offering instead a new title that conspicuously removes Canada from the picture: the "United States Mexico Trade Agreement". "These rumored trade provisions would codify the administration's savage attacks on environmental protection, food safety, and consumer rights into trade deals that enshrine and globalize deregulation, making it harder to restore USA environmental and consumer protections once this administration is shown the White House door". "And now we're bringing the other party in … So it isn't like Canada's coming in at the last minute". "They're going to work on that very hard", Trump said.

"The bottom line here is the agreement would increase production costs, and that would increase costs for consumers", Casario said. But Trump has called the agreement "the worst deal maybe ever signed" and moved ahead with tariffs earlier this year.

Noticeably absent from the agreement was Canada, one of America's top trading partners. "It could end in one day and we take in a lot of money the following day", Trump said. He's threatening anew to slap tariffs on Canadian cars if they fail to do what he wants.

Establish that 40% to 45% of a vehicle or truck's content must be made by workers earning more than $16 an hour. "Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement". "There are still issues with Canada but I think they could be resolved very quickly", a senior official told Reuters.

"We could have a separate deal or we could put it in the same deal", Trump said.

"In order to do no harm to the 14 million US jobs that depend on trade with Canada and Mexico, the agreement must remain trilateral", the US Chamber of Commerce said in a statement on Monday. This new deal will limit Mexico's ability to take USA manufacturing jobs by underpaying workers.

"Canada, we will start negotiations shortly". "I like to call this deal the United States-Mexico Trade Agreement".

Lighthizer told reporters in a call that the agreement with Mexico provided the "highest standards" of any existing agreement on digital trade, financial services and labor rights.

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