New U.S.-Mexico trade agreement is hardly a done deal

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Trump invited Ottawa to join what he characterized as American-Mexican trade negotiations, which have stretched through the summer without Canadian officials at the table. "We must gain control over core creativity, core technologies and core components", she said.

"In view of a long historical cycle, time is on China's side; in terms of ideas, China holds the moral high ground; and according to the development potential of the two countries, China will be the successful side", Chen said.

The US-Mexico discussions focused on crafting new rules for the automotive industry - which Mr Trump has put at the heart of his drive to rework trade pact (which he has repeatedly called a "disaster") for American workers.

But after a year of intense negotiations to salvage NAFTA, US and Mexican negotiators are keen to seal a new deal before Pena Nieto hands power to President-elect Andres Manuel Lopez Obrador on December 1.

Foreign Affairs Minister Chrystia Freeland had planned to be in Europe this week, visiting Germany, France and Ukraine. (A de minimis shipment value is the threshold at which a business has to pay duties on goods moving across the border and are subject to more stringent security checks.) Small US businesses or persons shipping goods worth $100 or less to Mexico would not be subject to tariffs and would face simpler customs checks.

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". Congress approved the NAFTA; they would have to approve US withdrawal, and change a whole slew of USA laws that implement the trilateral agreement.

"There are still issues with Canada but I think they could be resolved very quickly", a senior trade official told Reuters in an interview.

The Journal went onto bash the Trump agreement for stripping "current protections from most US investors in Mexico".

The president says he will be calling Canadian Prime Minister Justin Trudeau.

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Freeland only got as far as Berlin Monday before U.S. President Donald Trump announced a bilateral draft agreement between the United States and Mexico via a conference call from the Oval Office to outgoing Mexican President Enrique Peña Nieto. But the country has in the past insisted that it would not be bullied into accepting a deal without working through its areas of concern and it seems likely the Friday deadline will pass without a new agreement in place.

And 40 to 45 percent of the vehicle must be made by workers earning at least $16 per hour. "Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement".

Details from the Office of the U.S. Trade Representative show the preliminary agreements include a wage provision that 40 to 45 per cent of auto content would be made by workers earning at least $16 USA an hour, and increase in the auto content required from the NAFTA region to 75 per cent, up from the current 62.5 per cent.

But critics of the deal suggest it has led to significant job losses within the USA market, with companies shifting operations to Mexico due to lower production costs.

A source in South Korea's auto industry said many automakers would find it hard to meet the rule on workers' wages, which are much cheaper in Mexico.

"This (Trump) administration has shown an fantastic lack of both diplomacy and consistency in its dealings with our friends, neighbors and allies, and I don't see that changing", Garza said.

That said, the agreement with Mexico is not insignificant.

The United States relented on its demand for an automatic expiration for the deal, known as a "sunset clause". They then would either agree to a new 16-year deal or the pact would expire.