A preliminary version of a new US-Mexico trade deal is complete.
Here are a few things to know about this new US-Mexico trade deal.
- The new US-Mexico trade deal will be replacing NAFTA, which is almost 25 years old.
- This new deal is going by the name “The United States-Mexico Trade Agreement”.
- President Donald Trump says the name is changing from NAFTA because there are negative connotations with that deal.
- Unlike NAFTA, this new US-Mexico trade deal doesn’t include Canada.
- However, President Trump says that Canada is welcome to engage the US in fair negotiations.
- Canada says that it is waiting for the “bilateral issues” between the US and Mexico to resolve before it joins in on talks.
- President Trump has been pushing to create separate deals between the US and Mexico, and the US and Canada.
- While this may be President Trump’s goal, both Canada and Mexico are interested in keeping an agreement similar to NAFTA between all three countries.
- This new deal between the US and Mexico will last for 16 years.
- There will also be a review of the deal every six years.
- The new agreement keeps the current steel and aluminum tariffs.
- It also requires that a certain amount of steel and aluminum come from North America.
- One thing to note is that the agreement doesn’t place a limit on the import of light vehicles from Mexico.
- The deal needs approval from Congress before it can go into place.
As of this writing, William White did not hold a position in any of the aforementioned securities.