Trump: U.S., Mexico reach trade accord
President says it won’t be called NAFTA, and adds Canada may be part of the deal; Canada says it will carefully review the pact.
WASHINGTON — President Donald Trump announced Monday that the United States has reached agreement with Mexico on a new trade deal that he declared will not be called NAFTA a name he — said has bad connotations.
“It’s a big day for trade. It’s a big day for our country,” Trump told reporters gathered in the Oval Office to watch him speak by phone with Mexican President Enrique Peña Nieto.
Trump said he would see if Canada could be part of the deal, but that a separate deal with Canada was possible. That would amount to the biggest change yet in U.S. trade policy under the Trump administration if Trump ends the North American Free Trade Agreement and replaces it with a bilateral deal with Mexico.
Trump referred to the possible new deal as the United States-Mexico trade agreement.
Canadian Foreign Minister Chrystia Freeland was to arrive in Washington later Monday or this morning. The aim had been to have a “handshake deal” among the three countries for a new free trade agreement by the close of business Friday, an official familiar with the talks said.
A spokesman for Freeland said Canada was “encouraged by the continued optimism shown by our negotiating partners” but made clear that a final agreement would require careful review and more discussions.
“We will only sign a new NAFTA that is good for Canada and good for the middle class,” the spokesman said. “Canada’s signature is required.”
If Canada doesn’t sign off, it is unclear what Trump might do, as he has said he would try to cancel the entire trade pact.
But if Canada does agree to a new deal, it would allow Trump to officially notify Congress that a deal had been reached, starting a 90-day clock under the rules governing the American president’s trade negotiating authority and allowing Peña Nieto to sign the deal before his successor, Andrés Manuel López Obrador, takes office Dec. 1.
López Obrador has been supportive of the negotiations but would be likely to seek changes if the treaty is not completed before he assumes the presidency. His concerns about cementing Mexico’s energy privatization in a new NAFTA were among the final sticking points in the talks.
With only five days remaining for the United States and Canada to iron out their differences, negotiators realize they have exhausted all their wiggle room. “Realistically, it’s certainly tight,” the official said.
Larry Herman, a Toronto trade lawyer and former Canadian trade negotiator, said Canada has “every right” to examine the details of what was agreed to between Mexico and the United States and will then decide how to proceed.
“I think it’s appalling that Canada has been kept at arm’s length from these talks over the past number of weeks,” Herman said.