Trump announces 'termination' of NAFTA

US President Donald Trump announced Aug. 27 that the US and Mexico have reached an agreement on a new trade deal called the United States-Mexico Trade Agreement, which will ultimately terminate the North American Free Trade Agreement (NAFTA). While sitting at the resolute desk, Trump called Mexican President Enrique Peña Nieto to announce the new pact, which Trump described as "a really good deal for both countries [and] something that is very special for our manufacturers and farmers." Among a number of changes to NAFTA, both parties agreed to a provision that would require a significant portion of vehicles to be made in high-wage factories, a measure aimed to discourage factory jobs from leaving the US. Peña Nieto agreed with Trump while on speaker phone, stating, "I think this is something very positive for the United States and Mexico." The Mexican president further stated that he wanted Canada to be involved in the agreement.

Trump said that he is in communication with Canada about a new trade deal, but he is unsure if it will be part of the United States-Mexico Trade Agreement. "We're starting negotiations with Canada pretty much immediately," said Trump. "I can't tell you where these negotiations will go... But one way or another we have to deal with Canada. It will either be a tariff on cars or a negotiated deal."

The Trump administration plans to submit a letter to Congress this week, and the president expects the new pact to be signed by the end of November.

From Jurist, Aug. 27. Used with permission.

US, Canada agree to replace NAFTA with new trade deal

The US and Canada signed a new trade deal Oct. 1 to replace the 24-year-old North American Free Trade Agreement (NAFTA). The new "United States-Mexico-Canada Agreement (USMCA) includes 34 chapters and contains new tariff schedules, labor standards, and updated settlements and protections on textiles, agriculture, and digital trade. It was written to last at least 16 years with review for renewal to take place every six years. In a press release, Canadian Prime Minister Justin Trudeau said "the agreement-in-principle we reached today is good for Canada, good for Canadian businesses, and most importantly, good for Canadian workers and their families." (Jurist)

The Citizens Trade Campaign rejected the new pact as extending "special rights" to corporate polluters and "handouts" to oil and gas companies. The statement notes that the text of the new treaty fails to even mention climate change.

Mexico, Canada, US sign NAFTA replacement agreement

Leaders of the Mexican, Canadian and US governments signed a new trade deal on Nov. 30 that affects more than $1.2 trillion in regional commerce and is set to replace the 24-year-old North American Free Trade Agreement (NAFTA).

From the G20 Summit in Argentina, US President Donald Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto (on his last day in office) presented the agreement known as the United States Mexico Canada Agreement (USMCA).

The USMCA includes 34 chapters, including new ones covering digital trade, intellectual property, anti-corruption and regulatory practices, and it contains new tariff schedules, labor laws and rules on which products can legally be imported or exported, including updated settlements and protections on textiles, agriculture and digital trade.

Trudeau has been referring to the deal as "the new NAFTA," despite Trump's heavy criticism of NAFTA.

In a White House press release, Trump said "This new deal will be the most modern, up-to-date, and balanced trade agreement in the history of our country, with the most advanced protections for workers ever developed." (Jurist)