Friendly Fire? WSJ Ridicules Trade Deal with Mexico: 'Worse' Than NAFTA Pullout

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"Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement".

Robb Kerr, acting Head of Mission for the Consulate General of Canada in Seattle, told KIRO 7, "I think at this point, we're optimistic".

The president's own staff then also undercut the message. The president and other critics say the pact encouraged US manufacturers to move south of the border to exploit low-wage Mexican labor. Lighthizer noted that any signing would be delayed until Congress was informed and a 90-day waiting period passed. "I think it's going to lead to more jobs for American workers and farmers but also more jobs for workers and farmers from Mexico". "When that happens I can't quite tell you".

This preliminary agreement does not include Canada.

The first tipoff was the theatrics, which were rushed even by Trump's looser standards.

Trump announced the deal from the White House on Monday, calling it a "big day for trade".

The second is the timing.

"They used to call it NAFTA, we're going to call it the United States Mexico Trade Agreement", Trump said from the Oval Office, saying NAFTA has a negative connotation.

Even if Canada and the USA work out their differences,"Congress has a very tight window to ratify any new trade deal, there is no guarantee that an agreement will be in place by the end of this year", analysts at Moody's Investors Service said in an email.

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"Wages are now very low in Mexico and that is one of the reasons that auto makers are attracted to the country, the low cost of labour, but it [the new deal] might also affect whether they want to stay in Mexico or go to Asia and the U.S.", he added. But a senior Administration official insisted that wasn't the case on a conference call with journalists. "This is a normal, orderly way to arrive at an agreement with three people". The deal is expected to benefit both countries.

But other analysts said the answer wasn't clear: "It's a question that has never been tested", said Lori Wallach, director of the left-leaning Public Citizen's Global Trade Watch. Freeland's spokesman Adam Austen said in a statement Canada "will only sign a new NAFTA that is good for Canada and good for the middle class".

But Canada should be happy that the US has compromised with Mexico on its proposed "sunset clause", in which the Americans initially proposed to collapse and re-negotiate NAFTA every five years. The new deal could have a great impact on the Texas economy.

Trump made these comments during an oddly riveting televised event from the White House, where he had Mexico's outgoing president, Enrique Peña Nieto, on speakerphone.

The higher threshold is aimed at keeping more parts from Asia out, boosting North American automotive manufacturing and jobs.

Representatives of all three parties to the North American Free Trade Agreement had been trying for more than a year to renegotiate the deal.

Despite the administration's triumphant tone on Monday, there are numerous legal, legislative, and economic problems with the proposal.

Stocks are rising broadly as the USA and Mexico prepare to announce the details of the new trade agreement.

Canada has sat out the talks between the us and Mexico. But that doesn't do anything to clear up the other sticking points that have clogged NAFTA talks for more than a year, notably including Trump's longstanding demand for better access to Canada for USA dairy exports.