President Donald Trump said the U.S. is pursuing a new trade accord with Mexico to replace the North American Free Trade Agreement and called on Canada to join the deal soon or risk being left out.
Trump announced the agreement with Mexico in a hastily arranged Oval Office event Aug. 27 with Mexican President Enrique Pena Nieto joining by conference call. Pena Nieto said he is “quite hopeful” Canada would soon be incorporated in the revised agreement, while Trump said that remains to be seen but that he wanted those negotiations to begin quickly.
Canadian Foreign Minister Chrystia Freeland is leaving a trip in Europe early to travel to Washington for NAFTA talks on Aug. 28, spokesman Adam Austen said Aug. 27. Canada and the U.S. are still at odds over some key issues.
The U.S. and Mexico agreed to increase regional automotive content to 75% from the current 62.5% in NAFTA, with 40% to 45% of production by workers earning at least $16 an hour, the U.S. Trade Representative’s office said in an e-mailed statement. They agreed to review the deal after six years, softening a demand by the U.S. for a clause to kill the pact after five years unless it’s renewed by all parties. Duty-free access for agricultural products will remain in place, USTR said.
The S&P 500 Index closed just short of 2,900 and the Nasdaq Composite Index topped 8,000 for the first time. Shares of carmakers and parts producers in the equity benchmark surged more than 3.5%. The Dow Jones Industrial Average rose above 26,000 for the first since February. The peso rallied, and Canada’s dollar strengthened.