Trump agrees new deal with Mexico to ‘terminate’ Nafta

DONALD TRUMP yesterday announced that the United States and Mexico had agreed terms for a new trade deal, moving a step closer to delivering his campaign promise of renegotiating the North American Free Trade Agreement (Nafta).

Mr Trump said he hoped the deal would replace Nafta, a 24-year-old agreement between America, Canada and Mexico, but said he was ditching the old name because it had “bad connotations” for America, which was “hurt very badly” by the original terms.

Mr Trump challenged Canada – the third signatory – to return to the negotiating table after it stepped away. It was unclear last night if Mexico would sign without Canada and Congress also has to approve any arrangement.

Yesterday Mr Trump and Enrique Peña Nieto, the Mexican president, announced that they had reached an “understanding”.

The deal reportedly changes the percentage of a car that needs to be made in America or Mexico to avoid a tariff when sold across the border. Rules protecting workers have also been strengthened.