Mexico trade agreement sends markets to record highs

President Donald Trump

President Donald Trump

The relief, however, has been accompanied by fresh questions about the exact nature of the agreement and how this North American treaty might work if Canada is not a part of it. Videgaray and other top officials said they would do everything they could this week to have Canada included but that Mexico would have a trade agreement with the United States even if Canada opted out.

Major sections of the deal have been agreed upon, including intellectual property rights and the auto sector, and it seems that those arrangements would be acceptable for the Canadian delegation as the three sides sit down together today in Washington.

"The accelerated timeline to reach agreement with Canada over the next week presents a risk to the finalization of the deal", Raymond James analyst Ed Mills wrote in a note.

The leaders "had a constructive conversation" on NAFTA, and "look forward to having their teams engage this week with a view to a successful conclusion of negotiations", Trudeau's office said. It later morphed into the US-Mexico deal's requirement of 40 to 45 per cent of a vehicle's value to be made in high wage areas paying at least $16 an hour, requiring significant automotive production in the United States. There are several steps that must be followed after that, meaning Congress would not actually vote on the deal until next year, after mid-term elections that are expected to usher in a raft of new members.

"Trump is getting things done like he had promised and the markets like that because it removes the uncertainty of a trade war", Bakhos added.

In a press release, The White House announced it has secured a preliminary agreement with Mexico that "modernizes and rebalances the trade relationship to reflect the realities of the 21st century".

The Canadian team could be more amenable to the talks now that the United States has backed away from a controversial and strenuously-opposed provision to require the three nations to renegotiate NAFTA after five years.

Mr Trump has been critical of NAFTA, signed in 1994, which he blamed for sending USA manufacturing jobs to Mexico.

Nissan said it was "encouraged that an agreement was reached, and hope that it appropriately considers the impact on our employees, suppliers and customers". But as the Oval Office pushback showed, there are more reasons than usual to be skeptical of Trump's sales pitch on the new free trade agreement.

Trump, who has called NAFTA a "rip off" for the USA, called Monday's announcement a big win.

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Mourinho was goaded with chants of "you're getting sacked in the morning" by the travelling Tottenham fans. The Portuguese was already walking out of the room as he continued to repeat the word "respect".

"The U.S. market and the Canadian markets are very intertwined", Mnuchin said.

The U.S. -Mexico agreement now includes a six-year mandated review period with Mexico.

USA trade officials described the agreements reached over the weekend with Mexico as a big improvement over the current free trade pact between the three countries.

The U.S. -Mexico deal would require 75 percent of auto content to be made in the United States and Mexico, up from the current level of 62.5 percent. Trump and Republicans in the US Congress up for re-election in November want to ensure farmers and other voters whose jobs depend on trade with Canada and Mexico that the deal is sealed.

"I like to call this the United States-Mexico Trade Agreement".

The Canadian foreign minister, Chrystia Freeland, cutting short a trip to Europe, was due in Washington on Tuesdayto start talks with USA trade negotiators, as pressure mounts on Ottawa to agree to join the agreement.

"We are very interested in this being an agreement of three countries", said President-elect Andres Manuel Lopez Observador.

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John Cornyn of Texas, the No. 2 Senate Republican and chairman of the subcommittee on global trade, said in a statement the Mexico agreement is a "positive step", but he added that Canada needs to be party to a final deal.

Canadian stocks and the dollar, known as the loonie, extended gains Monday on news of the U.S.

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