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| Trump Says Nafta Deal Is Reached Between U.S. and Mexico | |
| (35 minutes later) | |
| WASHINGTON — President Trump said Monday that the United States and Mexico had reached agreement to revise key portions of the North American Free Trade Agreement and would finalize it within days, suggesting he was ready to jettison Canada from the trilateral trade pact if the country did not get on board quickly. | WASHINGTON — President Trump said Monday that the United States and Mexico had reached agreement to revise key portions of the North American Free Trade Agreement and would finalize it within days, suggesting he was ready to jettison Canada from the trilateral trade pact if the country did not get on board quickly. |
| Speaking from the Oval Office on Monday, Mr. Trump touted the preliminary agreement with Mexico as a new trade pact that could replace Nafta and threatened to hit Canada with auto tariffs if it did not “negotiate fairly.” | Speaking from the Oval Office on Monday, Mr. Trump touted the preliminary agreement with Mexico as a new trade pact that could replace Nafta and threatened to hit Canada with auto tariffs if it did not “negotiate fairly.” |
| “They used to call it Nafta,” Mr. Trump said. “We’re going to call it the United States Mexico Trade Agreement,” adding that the term Nafta — which he has called the “worst” trade deal in history — had “a bad connotation” for the United States. | “They used to call it Nafta,” Mr. Trump said. “We’re going to call it the United States Mexico Trade Agreement,” adding that the term Nafta — which he has called the “worst” trade deal in history — had “a bad connotation” for the United States. |
| The president has often floated the idea of reworking Nafta into one or more bilateral deals, but his comments threw the trade agreement’s future into doubt, prompting skepticism among lawmakers who support Nafta and concern among businesses whose supply chains depend on a deal encompassing Canada, Mexico and the United States. In dangling the prospect of a new, bilateral trade agreement, Mr. Trump appeared eager to pressure Canada to come to a quick resolution and accede to many of the United States’ demands. | The president has often floated the idea of reworking Nafta into one or more bilateral deals, but his comments threw the trade agreement’s future into doubt, prompting skepticism among lawmakers who support Nafta and concern among businesses whose supply chains depend on a deal encompassing Canada, Mexico and the United States. In dangling the prospect of a new, bilateral trade agreement, Mr. Trump appeared eager to pressure Canada to come to a quick resolution and accede to many of the United States’ demands. |
| “You know, they have tariffs of almost 300 percent on some of our dairy products, and we can’t have that. We’re not going to stand for that. I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in,” Mr. Trump said. | “You know, they have tariffs of almost 300 percent on some of our dairy products, and we can’t have that. We’re not going to stand for that. I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in,” Mr. Trump said. |
| Mexican officials said on Monday that they wanted to have Canada back in the process and were working toward a trilateral deal by the end of the week. Both the Mexicans and Americans have been eager to reach a fully revised Nafta deal by the end of August, a date that would give the Trump administration enough time to notify Congress that a deal had been finalized and still have that deal be signed by the outgoing Mexican administration of Enrique Peña Nieto. | Mexican officials said on Monday that they wanted to have Canada back in the process and were working toward a trilateral deal by the end of the week. Both the Mexicans and Americans have been eager to reach a fully revised Nafta deal by the end of August, a date that would give the Trump administration enough time to notify Congress that a deal had been finalized and still have that deal be signed by the outgoing Mexican administration of Enrique Peña Nieto. |
| “Ideally we’ll have the Canadians involved,” Robert E. Lighthizer, the United States trade representative said, adding that the administration planned to inform Congress by Friday of its intent to sign a new deal. “If we don’t have Canada involved, we will notify that we have a bilateral agreement that Canada is welcome to join.” | “Ideally we’ll have the Canadians involved,” Robert E. Lighthizer, the United States trade representative said, adding that the administration planned to inform Congress by Friday of its intent to sign a new deal. “If we don’t have Canada involved, we will notify that we have a bilateral agreement that Canada is welcome to join.” |
| Chrystia Freeland, the Canadian foreign minister, will travel to Washington, D.C. on Tuesday to continue negotiations, Adam Austen, her spokesman, said Monday. | Chrystia Freeland, the Canadian foreign minister, will travel to Washington, D.C. on Tuesday to continue negotiations, Adam Austen, her spokesman, said Monday. |
| “We will only sign a new NAFTA that is good for Canada and good for the middle class. Canada’s signature is required,” Mr. Austen added. | “We will only sign a new NAFTA that is good for Canada and good for the middle class. Canada’s signature is required,” Mr. Austen added. |
| The revised deal with Mexico makes significant alterations to rules governing automobile manufacturing, in an effort to bring more car production back to the United States from Mexico. | The revised deal with Mexico makes significant alterations to rules governing automobile manufacturing, in an effort to bring more car production back to the United States from Mexico. |
| To qualify for zero tariffs under Nafta, car companies would be required to manufacture at least 75 percent of an automobile’s value in North America under the new rules, up from 62.5 percent previously. They will also be required to use more local steel, aluminum and auto parts, and have 40 percent to 45 percent of the car made by workers earning at least $16 an hour, a boon to both the United States and Canada. | To qualify for zero tariffs under Nafta, car companies would be required to manufacture at least 75 percent of an automobile’s value in North America under the new rules, up from 62.5 percent previously. They will also be required to use more local steel, aluminum and auto parts, and have 40 percent to 45 percent of the car made by workers earning at least $16 an hour, a boon to both the United States and Canada. |
| In a briefing Monday, administration officials said that the United States and Mexico had also come to an agreement on a controversial “sunset clause,” proposed by the Trump administration, that would cause Nafta to automatically expire every five years unless the three countries voted to extend it. | In a briefing Monday, administration officials said that the United States and Mexico had also come to an agreement on a controversial “sunset clause,” proposed by the Trump administration, that would cause Nafta to automatically expire every five years unless the three countries voted to extend it. |
| The two countries agreed to a review of the trade pact every six years that would extend its lifetime for 16 more years, officials said. That longer time horizon would give lawmakers a chance to review the trade pact’s progress, while also giving businesses certainty for the immediate future. | The two countries agreed to a review of the trade pact every six years that would extend its lifetime for 16 more years, officials said. That longer time horizon would give lawmakers a chance to review the trade pact’s progress, while also giving businesses certainty for the immediate future. |
| The countries also came to an agreement that would limit the kinds of legal challenges that investors can currently make against foreign government under Nafta. | The countries also came to an agreement that would limit the kinds of legal challenges that investors can currently make against foreign government under Nafta. |
| It is unclear whether the revisions will be enough to get Canada to sign on to a revised deal. But any agreement that doesn’t involve Canada is likely to face legal challenges and intense opposition from Congress, which had granted the Trump administration authority to renegotiate Nafta as a trilateral deal. | It is unclear whether the revisions will be enough to get Canada to sign on to a revised deal. But any agreement that doesn’t involve Canada is likely to face legal challenges and intense opposition from Congress, which had granted the Trump administration authority to renegotiate Nafta as a trilateral deal. |
| In a statement, Senate Finance Committee Chairman Orrin G. Hatch, a Republican from Utah, said that improving Nafta would help American businesses, manufacturers and farmers but that a bilateral deal was not the answer. “To achieve that goal, a final agreement should include Canada,” he said. | In a statement, Senate Finance Committee Chairman Orrin G. Hatch, a Republican from Utah, said that improving Nafta would help American businesses, manufacturers and farmers but that a bilateral deal was not the answer. “To achieve that goal, a final agreement should include Canada,” he said. |
| Industry groups also said a final agreement must include Canada. “While we’re still awaiting the full details of this preliminary deal with Mexico, it is critical that any modernized NAFTA continue to include all three North American partners,” Rufus Yerxa, president of the National Foreign Trade Council, which represents exporters. “NAFTA has made North America an economic powerhouse, and the only way we can compete for global markets with Asian and European producers is to maintain and strengthen the entire North American production base.” | Industry groups also said a final agreement must include Canada. “While we’re still awaiting the full details of this preliminary deal with Mexico, it is critical that any modernized NAFTA continue to include all three North American partners,” Rufus Yerxa, president of the National Foreign Trade Council, which represents exporters. “NAFTA has made North America an economic powerhouse, and the only way we can compete for global markets with Asian and European producers is to maintain and strengthen the entire North American production base.” |
| The president, flanked by advisers including Mr. Lighthizer and Jared Kushner, hailed the preliminary agreements as “a big day for trade” and “a big day for our country.” The president bragged that “many people” had thought that no one could make a deal with Mexico and called the new deal “very special” for our manufacturers and farmers in particular. | The president, flanked by advisers including Mr. Lighthizer and Jared Kushner, hailed the preliminary agreements as “a big day for trade” and “a big day for our country.” The president bragged that “many people” had thought that no one could make a deal with Mexico and called the new deal “very special” for our manufacturers and farmers in particular. |
| Mexican foreign and economy ministers attended the White House meeting, and Enrique Peña Nieto, the outgoing Mexican president, joined by phone call. In a series of tweets on Monday, Mr. Nieto said that he had also spoken to Justin Trudeau, the Canadian prime minister, and that he was working toward a three-way agreement with the United States and Canada by the end of the week. | Mexican foreign and economy ministers attended the White House meeting, and Enrique Peña Nieto, the outgoing Mexican president, joined by phone call. In a series of tweets on Monday, Mr. Nieto said that he had also spoken to Justin Trudeau, the Canadian prime minister, and that he was working toward a three-way agreement with the United States and Canada by the end of the week. |
| “I expressed the importance of his reinstatement in the process,” Mr. Peña Nieto said in Spanish about Mr. Trudeau, “in order to conclude a trilateral negotiation this week.” | “I expressed the importance of his reinstatement in the process,” Mr. Peña Nieto said in Spanish about Mr. Trudeau, “in order to conclude a trilateral negotiation this week.” |
| “It is our wish, Mr. President, that now Canada will also be able to be incorporated in all this,” Mr. Peña Nieto said through a translator. “I assume that they are going to carry out negotiations of the sensitive bilateral issues between Canada and the United States.” | “It is our wish, Mr. President, that now Canada will also be able to be incorporated in all this,” Mr. Peña Nieto said through a translator. “I assume that they are going to carry out negotiations of the sensitive bilateral issues between Canada and the United States.” |
| Mr. Trump, however, seemed to hedge the possibility, saying “we’ll see if Canada can be part” of any deal, and that separate negotiations would start soon. | Mr. Trump, however, seemed to hedge the possibility, saying “we’ll see if Canada can be part” of any deal, and that separate negotiations would start soon. |
| Mr. Peña Nieto, who has at times exchanged harsh words with Mr. Trump as the two countries have squabbled over funding for a wall along the border of the two countries, added a moment of praise on Monday. | Mr. Peña Nieto, who has at times exchanged harsh words with Mr. Trump as the two countries have squabbled over funding for a wall along the border of the two countries, added a moment of praise on Monday. |
| “I recognize your political will,” Mr. Peña Nieto said, “and your participation in this.” | “I recognize your political will,” Mr. Peña Nieto said, “and your participation in this.” |