WORLD The Latest: NAFTA is being renamed US-Mexico Trade Agreement

WORLD

The Latest: NAFTA is being renamed US-Mexico Trade Agreement

AP

00:00, August 28, 2018

WASHINGTON (AP) — The Latest on a US trade agreement with Mexico (all times local):

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President Donald Trump hangs up the phone after talking with Mexican President Enrique Pena Nieto, in the Oval Office of the White House, Monday, Aug. 27, 2018, in Washington. Trump is announcing a trade “understanding” with Mexico that could lead to an overhaul of the North American Free Trade Agreement. Trump made the announcement Monday in the Oval Office, with Mexican President Enrique Pena Nieto joining by speakerphone. (Photo: AP)

11:55 a.m.

President Donald Trump says he intends to terminate the North American Free Trade Agreement and call its replacement “the United States-Mexico Trade Agreement” — a name that would exclude the third NAFTA partner, Canada.

Trump made the comments after announcing an “understanding” with Mexico that could lead to an overhaul of the 24-year-old trade pact, which Trump has called a job-killing “disaster.” Details of the US-Mexico agreement were expected to be unveiled later Monday.

The president says he will be calling Canadian Prime Minister Justin Trudeau. Trump says, “If they’d like to negotiate fairly, we’ll do that.” He also threatened to tax Canadian auto imports to increase the pressure on Canada’s government.

Trump says: “We could have a separate deal (with Canada) or we could put it into this deal.”

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11:45 a.m.

President Donald Trump says he’ll be “terminating” the North American Free Trade Agreement as he pursues a deal with Mexico and starts negotiations with Canada.

Trump said Monday during an Oval Office event that he’ll be calling the emerging agreement the “United States-Mexico Trade Agreement.” He says it will mark the end of the NAFTA name.

Mexican President Enrique Pena Nieto was on speakerphone and says he hopes NAFTA partner Canada will eventually be incorporated into the deal.

Adam Austen, a spokesman for the Canadian Foreign Minister, says Canada had been in regular contact with the NAFTA negotiators.

He says, “We will only sign a new NAFTA that is good for Canada and good for the middle class,” adding that, “Canada’s signature is required.”

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11:25 a.m.

President Donald Trump is announcing a trade “understanding” with Mexico that could lead to an overhaul of the North American Free Trade Agreement.

Trump made the announcement Monday in the Oval Office, with Mexican President Enrique Pena Nieto joining by speakerphone.

Canada, which is part of NAFTA, is not participating in the announcement. Trump says negotiations with Canada have yet to begin and is calling on the country to negotiate fairly. He’s threatening anew to slap tariffs on Canadian cars if they fail to do what he wants.

Trump says the call is being held to “celebrate the understanding” the US and Mexico have reached on trade.

He says, “It’s an incredible deal for both parties.”

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10:25 a.m.

President Donald Trump says the prospects are “looking good” for an agreement with Mexico that could set the stage for an overhaul of the North American Free Trade Agreement.

Trump tweeted Monday morning: “A big deal looking good with Mexico!”

US and Mexican negotiators worked over the weekend to narrow their differences. Once they reach an agreement, the third country in NAFTA — Canada — would be brought back in to finalize a revamp of the 24-year-old pact.

NAFTA reduced most trade barriers between the three countries. But Trump and other critics say it encouraged US manufacturers to move south of the border to exploit low-wage Mexican labor.

The Trump administration wants a higher percentage of auto production to come from within the NAFTA bloc before qualifying for duty-free status.

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