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US, Canada Meet to Discuss NAFTA
Officials representing the US and Canada met to secure a deal to revamp the current North American Free Trade Agreement, which they were unable to secure during last Friday’s deadline. Following a NAFTA deal with Mexico, the US was hoping to reach an agreement with Canada quickly, but talks stalled when both sides could not come to a resolution.
The trade deal struck with Mexico would effectively eliminate the NAFTA name and would now be called The United States-Mexico Trade agreement. The Trump administration was pushing for a revamp of the NAFTA agreement prior to December 1 when Mexico turns over its leadership to the incoming administration of President-elect Andrés Manuel López Obrador.
The bilateral U.S.-Mexico deal announced on Monday gives U.S. President Donald Trump the right to impose 25% tariffs on imports of Mexican-made passenger vehicles. If Trump proceeds with the tariffs, Mexican duty-free exports of cars and sport-utility vehicles to the U.S. would have a cap of 2.4 million vehicles per year.
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