Details of the Preliminary US-Mexico Trade Deal, at a Glance

Trump announces 'incredible' trade deal with Mexico

Trump announces 'incredible' trade deal with Mexico

Speaking Tuesday on Gormley, Jeremy Harrison said the news this week that the US and Mexico had reached a two-way deal to replace the 25-year-old North American Free Trade Agreement (NAFTA) was worrisome.

On her way into more talks with the Americans, Freeland said that her team had worked into the evening last night on some of the proposals still in play and she would be discussing Canada's position with her counterpart, Robert Lighthizer.

Later Monday, Freeland spokesman Adam Austen said in a statement: "Given the encouraging announcement today of further bilateral progress between the US and Mexico, Minister Freeland will travel to Washington, D.C., tomorrow to continue negotiations".

Freeland hurried to Washington a day after the Trump administration reached a preliminary deal Monday with Mexico to replace the North American Free Trade Agreement (NAFTA).

"We're going to call it the United States-Mexico Trade Agreement", he said of today's deal, explaining that NAFTA "has a bad connotation because the United States was hurt very badly by NAFTA for many years".

"One way or the other, we have a deal with Canada", Trump said from the Oval Office, where he was joined on a speaker phone by Mexican President Enrique Pena Nieto.

After Trump said he would terminate the NAFTA deal and make a new bilateral trade agreement with Mexico, Canada is now left out in the cold in North American trade relations.

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Trump has repeatedly complained about Canada's high tariffs on imported dairy. On Friday, the Trump administration plans to send Congress a formal notice of the trade agreement.

According to Reuters, Mexico's incoming trade negotiator told reporters in Washington that the USA had softened its stance on the so-called sunset clause.

Guajardo said if Ottawa and Washington fail to come to agreement, Mexico would have to return to the negotiating table to revisit some of the auto industry rules. If the parties agree to continue with no changes, it will be renewed for another 16 years.

"I think there's a really good chance" to get a "deal in principle" by Friday if both countries compromise, Bruce Heyman, a former US ambassador to Canada under President Barack Obama, told Bloomberg TV on Wednesday.

Sklar couched that by noting this is a tentative agreement without reference to Canada.

"Remember the visit from Prime Minister Trudeau to Washington, the message was, 'It's going to be very easy to solve the relationship with Canada.' The one that is complex and very hard is the relationship with Mexico", Guajardo said.

Observers have raised concerns that Canada's absence from the talks could put Ottawa in a position where it might be pressured into accepting a less-appetizing deal reached between the US and Mexico.

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The senior official repeated that the new trade agreement is not only better than the existing NAFTA deal, "but also far better than TPP".

The White House has said Trump will sign the deal 90 days after notification.

The U.S. -Mexico arrangement does not exclude Canada, which retains the opportunity to reach new terms with its most important business partner.

BMO chief economist Douglas Porter said in a note that the deal "raises more questions than answers for Canada" and leaves the country in a hard situation.

Ottawa could offer U.S. dairy farmers a small increased share of the market as it did with the European Union in a free trade pact a year ago.

"We have been encouraged by the progress made by our NAFTA partners over the past weeks", Trudeau said. "And farmers were really at the top of my list, because I think they've been treated very unfairly for many years - including by NAFTA - but very unfairly for many years, because they have barriers", Trump said. "But I think we'll give them a chance to probably have a separate deal". Trump himself has avoided directly calling for the dismantling of supply management during his frequent attacks on Canadian dairy, including during Monday's announcement with Mexico.

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