The Trade Guys talk Trump’s new NAFTA deal with Mexico. The Trump administration celebrates the U.S.-Mexico deal this week, which updates provisions on automobiles moving across the border, intellectual property, agriculture and labor. Plus, as Trump shifts his attention to Canada, what’s next from our neighbors to the north?

What We’re Reading

“Trump Says Nafta Deal Is Reached Between U.S. and Mexico”

New York Times

“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.”

Why it matters: A year after beginning negotiations, the U.S. and Mexico have reached a preliminary bilateral trade deal in principle – without Canada. The administration has said that on Friday it will move forward with either a bilateral deal with Mexico or a trilateral agreement if one can be struck.

Key questions: Is one week even enough time for Canada, the U.S. and Mexico to hash out a NAFTA deal? What are the biggest obstacles to a trilateral deal?

“Trump needs Canada and Congress for a win on NAFTA”


“President Donald Trump has a lot more negotiating to do — with Congress and Canada — before he can really take credit for delivering on his campaign promise to overhaul NAFTA.”

Why it matters: If President Trump wants to follow through on his pledge to revamp NAFTA to the benefit of the U.S. he will need the support of Congress, and to do that Canada will have to be part of the final trade deal.

Key questions: What role does Congress play in bringing trade deals into force? Why is it important to Congress that Canada be included in the final deal?

“How Trump’s NAFTA deal will affect automakers”

The Detroit News

“President Donald Trump announced a trade deal with Mexico on Monday that would increase the percentage of a car’s parts that must be built in either nation to qualify for duty-free treatment.”

Why it matters: As part of the Trump administration’s goal of increasing U.S. auto production, the U.S.-Mexico draft trade agreement includes new rules that require autos to source more of their content from North America as well as a requirement that 40 to 45 percent of auto content be made by workers that earn at least $16 an hour if cars are to qualify for duty-free treatment.

Key questions: Will these requirements lead to more U.S. jobs in the auto sector? Are the conditions too onerous for companies to meet?