The new deal will keep tariffs on agricultural products traded between the United States and Mexico at zero and seeks to support biotech and other innovations in agriculture.
Ford, GM, and Fiat Chrysler - the US's largest automakers - all got a boost Monday following the announcement that the U.S. and Mexico reached an agreement on parts of NAFTA. Also pictured is Mexican Foreign Affairs Minister Luis Videgaray Caso, left. Trump and his Mexican counterpart were not talking face-to-face as might be expected for a momentous trade announcement, but rather by speakerphone, which led to a briefly comical moment when Trump couldn't get him on the line at first.
Al Jazeera's John Holman, reporting from Mexico City, said outgoing President Nieto "probably had to make sacrifices" to protect a trade agreement with the USA, with a possible outcome being the flight of vehicle manufacturing companies from the country.
Members of the Kansas congressional delegation balanced their praise Monday for the president's efforts in trade relations by asserting a desire to find more indelible comfort for the state's distressed agriculture and manufacturing sectors.
"Mexico made a quantum shift from where they were thanks, I think, to their new president who argued that NAFTA was bad for Mexican workers who got the jobs but not the pay", he said. It has a bad connotation.
Noting the "massive amount of movement of goods between the three countries and the integration of operations", Jay Timmons, president of that U.S. National Association of Manufacturers, said "it is imperative that a trilateral agreement be inked". Today he again vowed to raise auto tariffs on Canada if it refuses to revise unfair levies of almost 300 percent on some American goods, among other unfair practices.
While share prices for South Korean and Japanese automakers gained amid expectations of reduced tariff risk, Mexico's peso weakened 0.4 per cent against the dollar in Asian trading on Tuesday, paring about half its Monday climb.
The US-Mexico agreement has tougher new protections for collective bargaining, and requires 40 percent of autos receiving duty-free treatment to come from factories where workers make at least US$16 an hour.
He said: "If they'd like to negotiate fairly, we'll do that".
American and Mexican negotiators worked through the weekend to forge an agreement on key issues related to the automotive industry.
The U.S. and Mexico shook hands on an agreement in principle to update the free-trade agreement, after five weeks of talks that excluded Canada.
"Progress between Mexico and the United States is a necessary requirement for any renewed NAFTA agreement", he said. This new deal will limit Mexico's ability to take USA manufacturing jobs by underpaying workers.
Canada will be joining the talks after the United States and Mexico come to an agreement to replace NAFTA, which was signed in 1994.
The White House said Trump will sign the deal in 90 days.
"A trilateral agreement is the best path forward", Cornyn said, adding that millions of jobs were at stake.