President Trump has repeatedly made clear that he will not accept anything less than the best when it comes to an international trade deal with the United States. He has repeatedly warned European allies, China, Mexico, and Canada.
The U.S. president said the new gold standard of trade deals would be those which help American growth, American businesses, and American workers.
One deal Trump wanted to renegotiate was the North American Free Trade Agreement (NAFTA) – an agreement between Canada, Mexico, and the U.S. which Trump has denounced as one of the worst ever.
Canadian Prime Minister Justin Trudeau said “no deal” and said NAFTA would never be renegotiated.
That was enough of an answer for Trump, so he decided to pull out of the agreement which has stood for more than 20 years and instead quickly announced the U.S. would be entering into a bilateral deal with its southern neighbor.
Canada was left out.
Per the new deal with Mexico, Canada has until a deadline on Friday to enter back into the trade agreement with the U.S., all but forcing them to meet the demands of Trump and the U.S.
— Fox News (@FoxNews) August 31, 2018
Chrystia Freeland, Canada foreign minister, said “There is a lot of good will. It’s a lot that we’re trying to do in a short period of time. We’re working very intensely.”
— FOX Business (@FoxBusiness) August 30, 2018
Here’s more, per Associated Press:
Negotiators for the United States and Canada will meet again Friday morning to resume their urgent talks to revamp the North American Free Trade Agreement.
Canadian Foreign Minister Chrystia Freeland met for less than five minutes late Thursday night with U.S. Trade Representative Robert Lighthizer. She told reporters she “had a couple of things to say.”
Freeland came into the USTR building a total of four times Thursday. She and Lighthizer held the longest negotiating sessions since she arrived in Washington Tuesday.
Earlier Thursday, Freeland told reporters, “We continue to be encouraged by the constructive atmosphere that I think both countries are bringing to the table.”
As CNN Money reports, the stock market has already boomed over the announcement of a bilateral deal with Mexico:
Investors cheered a tentative US-Mexico trade deal and sent stocks to record highs.
Both the S&P 500 and the Nasdaq closed at all-time highs on Monday, and the Nasdaq topped 8,000 for the first time. The Dow spiked 259 points and finished above 26,000 for the first time since February 1.
The agreement would require that 75% of the parts in any car sold in North America be produced in the United States or Mexico to be exempt from tariffs. The existing threshold is 62.5%.
It would also require that 40% to 45% of auto parts in cars sold in North America be made by workers earning at least $16 per hour. Those rules could give American plants an advantage over Mexican plants, where workers make far less.
According to the report, Canada is expected to sign into the deal.