U.S., Mexico reach NAFTA deal; talks with Canada to start immediately

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National Economic Council Director Larry Kudlow said the new United States-Mexico Trade Agreement protects the American worker while promoting economic growth.

Trump has threatened he still could put tariffs on Canadian-made cars if Canada did not join its neighbors and warned he expected concessions on Canada's dairy protections. "The Congress, and only the Congress, can agree to the termination of Nafta by the United States".

Canada, which is part of NAFTA, did not participating in the announcement.

President Trump's top economic adviser said Tuesday that Canada can still get a good trade deal with the USA if it is willing to compromise.

NAFTA reduced most trade barriers between the three countries. This gives Canadian negotiators a much better understanding of the USA bottom line. Once they reach an agreement, the third country in NAFTA - Canada - would be brought back in to finalize a revamp of the 24-year-old pact. The 1987 book that Trump coauthored with Tony Schwartz brands successful negotiations as zero-sum games won by keeping others on their toes and maximizing leverage. "Millions of jobs in Texas depend on an updated NAFTA, and it's important that we get this right".

Videgaray said in Washington on Monday that scope for making changes with Canada to what the United States and Mexico had agreed was "significantly larger" this week, though he did not rule out alterations after that. After all, the deal with Mexico covers the auto sector, which has always been his top NAFTA gripe.

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It was refreshing Monday to see the USA and Mexico in agreement on trade that could benefit both countries. "It's a really good deal for both countries", President Trump said in announcing the agreement from the Oval Office, with Mexico's President Enrique Pena Nieto participating by telephone.

President Donald Trump announced Monday that he plans to end NAFTA and pursue a separate deal with Mexico. Both U.S. and Mexican officials said Monday they are now focused on Canada. But the unions, which represent more than 12 million workers, want to see the full text of any agreement before giving their final approval.

Trump has claimed since his presidential campaign that he would oversee construction of a wall on the USA southern border that would be paid for by Mexico.

"We will engage in a positive way and look forward to ultimately signing a deal as long as it´s good for Canada and good for middle class Canadians", Trudeau said during a visit with local business leaders in Quebec.

Though details of the new agreement are still unclear, it will predictably become less profitable for Canada than under NAFTA, which was condemned by the U.S. president as the "single worst deal ever approved". But suddenly the heat seems to be on to have Canada sign a new NAFTA deal by the end of the week. "I think this is threat and bombast, but it is indicative of a very negative relationship between the White House and the Canadian government", Herman said.

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