After President Donald Trump threatened to withdraw from the North American Free Trade Agreement, a modified deal between the U.S. and Mexico has been reached, Trump said in remarks Monday in the Oval Office.
Trump and Mexican Economy Minister Ildefonso Guajardo have been in negotiations on bilateral disagreements over NAFTA.
These discussions have resulted in the decision to strike an entirely new trade deal, rather than crafting revisions to key parts of the prior agreement, Trump said. As of Monday afternoon, trade negotiations with Canada are still pending.
When announcing the logistics of the replacement, Trump said the deal will be called “The United States-Mexico Trade Agreement.”
"It's a big day for trade. It's a big day for our country," Trump said, according to Fox Business. “A lot of people thought we’d never get here because we all negotiate tough — we do, so does Mexico.”
Why It’s Important
Any trade deal has significant implications for the automotive industry. Trump remains adamant about transforming export and tariff rules, which he believes negatively affect American manufacturing workers.
The administration's intentions are to impose a cap on Mexican car and SUV exports and to increase tariff-free access.
CTV News correspondent Michel Boyer tweeted a statement he received Monday from Canadian Minister of Foreign Affairs Chrystia Freeland's spokesperson.
"Canada is encouraged by the continued optimism shown by our negotiating partners. Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement," the statement said.
"We are in regular contact with our negotiating partners, and we will continue to work toward a modernized NAFTA."
Canada will only sign off on a new NAFTA that is good for Canada and the middle class, Freeland said.
"Canada's signature is required."
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