NAFTA News: 14 Things to Know About the Preliminary US-Mexico Trade Deal
A preliminary version of a new US-Mexico trade deal is complete.
Source: Shutterstock
Here are a few things to know about this new US-Mexico trade deal.
The new US-Mexico trade deal will be replacing NAFTA, which is almost 25 years old.
This new deal is going by the name “The United States-Mexico Trade Agreement”.
President Donald Trump says the name is changing from NAFTA because there are negative connotations with that deal.
Unlike NAFTA, this new US-Mexico trade deal doesn’t include Canada.
However, President Trump says that Canada is welcome to engage the US in fair negotiations.
Canada says that it is waiting for the “bilateral issues” between the US and Mexico to resolve before it joins in on talks.
President Trump has been pushing to create separate deals between the US and Mexico, and the US and Canada.
While this may be President Trump’s goal, both Canada and Mexico are interested in keeping an agreement similar to NAFTA between all three countries.
This new deal between the US and Mexico will last for 16 years.
There will also be a review of the deal every six years.
The new agreement keeps the current steel and aluminum tariffs.
It also requires that a certain amount of steel and aluminum come from North America.
One thing to note is that the agreement doesn’t place a limit on the import of light vehicles from Mexico.
The deal needs approval from Congress before it can go into place.
You can follow these links to learn more about the new US-Mexico trade deal.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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