US, Mexico reach new deal to revamp Nafta

Bloomberg

Donald Trump has signed off on a bilateral agreement with Mexico to revamp the North American Free Trade Agreement, according to three people familiar with the matter.
“A big deal looking good with Mexico!” Trump tweeted earlier on Monday.
There is no deal reached yet with Canada, the people said, which has been on the sidelines of the talks since July as Mexico and the US focussed on settling differences.
It’s the biggest development in talks that began a year ago, punctuated by Trump’s repeated threats to quit altogether. Significant breakthr- oughs between Mexico and the US came during past several days on automobiles and energy. The three countries trade over $1 trillion annually, much of it under the pact.
There is one bilateral difference left to iron out, Mexican Economy Minister Ildefonso Guajardo told reporters early on Monday as he entered Washington office of the US Trade Representative’s office where negotiations are going on. He declined to identify the issue.
While it could be more of a Nafta tweak than an overhaul, several issues remain to update the 1994 accord. Canada will now need to rejoin talks — the US hadn’t invited them for weeks — and sign off on the deal, as well as resolve its own irritants. Monday’s bilateral agreement and the threat of auto tariffs could pressure Canada, which has warned it won’t rubber stamp anything.
Talks to update Nafta began a year ago, but in recent weeks have been held between just the US and Mexico. The US push to finish Nafta talks comes at the same time it’s in a spiraling trade war with China, and has threatened to place tariffs on cars imported from major manufacturing centers in Asia and Europe — efforts that have created new uncertainty for many businesses and investors.