NAFTA News: 14 Things to Know About the Preliminary US-Mexico Trade Deal

Congress still needs to approve the deal

A preliminary version of a new US-Mexico trade deal is complete.

NAFTA News: 14 Things to Know About the Preliminary US-Mexico Trade Deal
Source: Shutterstock

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.

You can follow these links to learn more about the new US-Mexico trade deal.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media,

©2020 InvestorPlace Media, LLC