A close look at Trump's claims on trade deal

A close look at Trump's claims on trade deal

Despite Trump's hostile rhetoric about unauthorized immigrants crossing into the United States from Mexico, he appeared to be on better terms with that nation's president, Enrique Peña Nieto, who was serving his final day in office - and, in Trump's view, going out on a high note by signing the trade agreement.

The leaders of the United States, Mexico and Canada on Friday signed a huge regional trade deal to replace the old NAFTA, denounced by President Donald Trump as a killer of USA jobs.

Legislative bodies from each of the nations still need to approve the deal, called the U.S. Mexico Canada Agreement, or USMCA. The letters also say Canada and Mexico have to consider whether an automaker is complying with USMCA's auto-content rules - which mandate that vehicle makers source more car parts from North America - when determining how much of that company's production to protect.

Outgoing Mexican President Enrique Pena Nieto is attending the G20 meeting.

Trudeau said the deal "lifts the risk of serious economic uncertainty that lingers throughout a trade renegotiation process - uncertainty that would have only gotten worse and more damaging if we had not reached a new NAFTA".

"In the United States, the new trade pact will support high-paying manufacturing jobs and promote greater access for American exports across the range of sectors, including our farming, manufacturing, and service industries". He urged Trump to remove tariffs on Canadian steel and aluminum, which have been cited as a factor in GM's decision to cut costs.

The negotiations were long and at times acrimonious, with Freeland and her delegation learning first-hand what it's like to negotiate with President Donald Trump's administration, in particular his trade emissaries - U.S. Trade Representative Robert Lighthizer and his deputy, C.J. Mahoney.

Trump faces a series of diplomatic challenges over the weekend, most notably whether he can strike an agreement with Xi.

He called the deal by its old name NAFTA, prodded Trump over U.S. steel and aluminium tariffs, and said General Motors Co's decision to cut production and slash its North American workforce, including in Canada, was a "heavy blow".

The new agreement is to be known as the USMCA (U.S. -Mexico-Canada Agreement) in U.S. law and CUSMA (with Canada first) in Canadian law.

Pena Nieto said the new deal will provide a more "modern framework" for future exchanges between the countries. The revised pact, which comes after a long, hard negotiation, won't replace NAFTA until it's been approved by the legislatures of all three countries.

Both Trudeau and Trump have taken criticism over the new agreement. He said that NAFTA had a bad connotation in the US due to the negative effects of the agreement in the country, and that it is better to start fresh.

'We worked hard on this agreement - it's been long and hard, ' he said.

Trump praised the deal in the lavish language he uses when touting one of his administration's accomplishments.

In June this year, Washington introduced a 25-percent tariff on steel imports and a 10-percent tariff on aluminum imports from Mexico, Canada and the EU. "Unless strong enforcement mechanisms are written into the text of this agreement, corporations will continue to ship U.S.jobs to Mexico where workers are paid as little as $2 an hour".

But Canada's refusal to sign the deal with the tariffs in place softened this week, said one insider: "At the end of the day, removing the uncertainty from the rest of the economy is too important to pass up".

As of last week, Shonk said neither the USA government, nor the Mexican government, made an effort to remove that language from the agreement.

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