To hear President Donald Trump tell it on Monday, the United States is abandoning the NAFTA free trade deal between the US, Canada and Mexico in favor of a bilateral agreement between the US and Mexico.
But none of that is happening.
NAFTA talks ended in the spring and the U.S. -Mexico agreement could pave the way for Canada's return to the continental bargaining table. Provisions of the new agreement Monday are likely to include new requirements for automakers' infotainment systems and parts that were previously exempt from the final composition list under the old agreement. According to one 2013 study, NAFTA was directly responsible for raising the U.S. trade deficit with Mexico from $17 $177 billion, and cost the USA over 850,000 jobs.
Trump said the call was held to "celebrate the understanding" the USA and Mexico have reached on trade, saying: "It's an incredible deal for both parties". Functionally, that likely means more auto parts will be built and assembled in the U.S. But it could also raise wages or add more higher-paying positions in Mexico, too.
"We will only sign a new NAFTA that is good for Canada and good for the middle class", said Adam Austen, a spokesman for Freeland, adding that "Canada's signature is required". But I think we'll give them a chance to have a separate deal.
But Trump was eager to portray the agreement as much more than that as the reality TV star-turned-president orchestrated the latest made-for-TV moment of his presidency. It will also draw opposition from big American business groups whose support has generally been vital for trade deals to win U.S. Congressional support. "And this is a tremendous thing". When they returned, representatives said the two parties sought to reach a deal by the end of August, so the sitting Mexican president could sign it before he left office in December.
Negotiations centered on revisions to portions of the 1994 North American Free Trade Agreement, notably those involving auto manufacturing, which President Donald Trump has criticized for their imbalances.
Addressing reporters in the White House Oval Office on Wednesday, Trump praised the preliminary agreement as an "incredible deal" for both countries.
"It is our wish, Mr. President, that now Canada will also be able to be incorporated in all this", he said on the phone.
The US presidents said he meant to terminate NAFTA while he pursues trade deals with Mexico and starts negotiations with Canada.
The U.S. and Mexico reached a bilateral agreement on key NAFTA issues including auto rules of origin and access to the Mexican energy sector, various news sources announced Monday.
It wasn't long before Twitter users stepped up and took action, and oh boy did the Trump's mishap and Veep's closing credits really complement each other.
At present, Canada and the USA are locked into a trade spat. He previously called it a "terrible deal".
"It's hard to have three people all have the light bulb go off at the same time", the official said.
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