President Donald Trump is planning to ditch the existing North American Free Trade Agreement in favor of “one of the largest trade deals ever made” between the U.S. and Mexico. President Trump called it a “big day for trade,” saying “we’ll see” if Canada wants to get in on it or negotiate separately. Among the rules are requirements that 75% of auto-related manufacturing be done in the U.S. and Mexico. The key here is that Canada under liberal premier Trudeau will quickly be in a position to play ball or lose out on much-needed trade. This also puts significant pressure on China, as increasing outsourcing and imports are moving to Mexico.
Here’s more from Fox News…
President Trump on Monday said he plans to terminate the existing North American Free Trade Agreement, as he announced a new tentative agreement between the United States and Mexico that he described as “one of the largest trade deals ever made.”
“I’ll be terminating the existing deal and going into this deal,” the president said in the Oval Office, calling it a “big day for trade.”
But the president said Monday “we’ll see” if Canada can still be part of the trade pact, leaving open the possibility of separate agreements.
“We are starting negotiations with Canada pretty much immediately,” Trump said.
Trump, sitting at the Resolute Desk, put Mexican President Enrique Peña Nieto on his speaker phone as the press watched in the Oval Office. The Mexican president, speaking through a translator, congratulated the negotiators on both sides and expressed hope the United States and Canada would come to an agreement.