Deal With Mexico Over New NAFTA Announced
News coming from Washington D.C. today indicates that a new agreement has been reached between the U.S. and Mexico. On a rewrite to the existing NAFTA, (North American Free Trade Agreement), deal. That contemplates a flow of goods on both sides of the border that bring jobs and money to both countries. It’s said that both President Trump and President Peña of Mexico were pleased with the deal. Most of the new concepts of the agreement come in the auto industry. As the idea is to keep most of the production within North America. Dealing a good blow to Asian companies who want to invade the market with cheap materials.
The deal was met with great enthusiasm in the markets as the Dow posted great numbers again. Most importantly workers on both the U.S. and Mexico sides that depend on NAFTA can breathe easy today! As the new deal actually contemplates giving tax breaks and opportunities to companies who invest in the local economy and provide local jobs!
Sights Now Set On Canada
The deal could not have come at a better time politically for both Mexico and the United States. This is obviously a big win for the Trump Administration. As a new NAFTA deal had been one of the main campaign promises. Not only that, but it will help strengthen the economy even more. In Mexico getting this deal done before the new administration takes over was a big must. Companies in America are finally catching a break on foreign trade.
At the beginning of the negotiations, it was said this part was going to be the most difficult. Dealing with Mexico, who had been a constant rival of President Trump so to speak. Now Canada has to decide what to do. Since they essentially backed off from the deal a couple months back. Today the Trump-Trudeau relationship seems to have more of a personal negative side than really a commercial disagreement. That could ultimately slow things down. The difference is Mexico didn’t allow comments or Tweets to affect on a personal level. They understand that for Trump the comments were a business strategy nothing more. This new NAFTA deal could also be a huge step toward better border security! As both countries will probably have a more friendly approach to new border security talks in the near future!