United States stock indexes hit fresh records Monday as the USA and Mexico struck a tentative a bilateral trade deal that's expected to replace the 24-year old North American Free Trade Agreement. "I think NAFTA has a lot of bad connotations for the United States because it was a rip off".
Ford, GM, and Fiat Chrysler - the US's largest automakers - all got a boost Monday following the announcement that the USA and Mexico reached an agreement on parts of NAFTA.
Trump praised the deal at the White House on Monday, saying the new agreement would be "tremendous" for United States farmers and workers.
From the moment NAFTA renegotiations started previous year, USA officials pushed for something called a "sunset clause" which is effectively a way for them to push the escape button and force a new deal, if the terms of trade didn't improve to their liking. U.S. West Texas Intermediate (WTI) crude futures gained 15 cents, or 0.2 percent, to close at $68.87 a barrel. Perhaps as a hardline negotiating tactic, the president also suggested that the U.S. might hike tariffs on Canadian cars in response, a move that analysts with CIBC markets reported in July could cut Canada's vehicle exports to the USA almost in half, and could throw the manufacturing province of Ontario into recession.
Speaking from the White House Monday morning, President Trump announced a reboot of NAFTA after weeks of negotiations with Mexico.
Canada said it was "encouraged by the continued optimism shown by our negotiation partners", according to Adam Austen, spokesperson for Canadian Minister of Foreign Affairs Chrystia Freeland, who called progress between the USA and Mexico "necessary".
USA and Mexican negotiators worked over the weekend to narrow their differences. "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".
Outgoing Mexican President Enrique Pena Nieto also commented on the discussions, saying he hopes Canada will come back to the table. "To change objectives and negotiate a bilateral deal with Mexico means that he would have to terminate the NAFTA, because the NAFTA binds all three countries", Herman said. Among the controversial issues to be discussed with Ottawa is a "sunset clause" that Trump wanted, and which would impose a review of the deal every five years.
1 natural disaster strikes western Iran near Iraqi border
Bam in the country's southeastern province of Kerman witnessed a strong quake in December 2003 which killed 31,000 people. Back in November, a magnitude 7.3 quake struck western Iran, killing more than 600 and injuring more than 9,000.
However, his transition team has been taking part in the talks, and gave their blessing to the two-way deal.
The new deal will keep tariffs on agricultural products traded between the United States and Mexico at zero and seeks to support biotech and other innovations in agriculture.
A senior administration official told reporters that negotiations with Canada would start Monday afternoon.
The deal also requires companies to respect collective bargaining, which is the process by which trade unions can make labour agreements on behalf of workers, and requires that companies adhere to all applicable labour laws.
Mexico's president stressed that he, too, wants Canada included in the deal.
President Donald Trump made the announcement on Monday from the White House.
"We are better off with all three countries involved, and I hope we will get to that result", the official said.
Earlier in the day, a spokesperson for Freeland said: "Canada is encouraged by the continued optimism shown by our negotiating partners".