Donald Trump announces new trade deal with Mexico

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The president said he is willing to call Canadian Prime Minister Justin Trudeau, adding, "If they'd like to negotiate fairly, we'll do that".

"I think with Canada, frankly, the easiest we can do is to tariff their cars coming in".

"It's a tremendous amount of money and it's a very simple negotiation".

Earlier on Monday, Trump had tweeted about "A big deal looking good with Mexico".

After Donald Trump's announcement today of a breakthrough in trade talks with Mexico, the statement issued by Canadian Foreign Minister Chrystia Freeland's office ended with four seemingly incongruous words: "Canada's signature is required".

His opponent, the Democrat James Thompson, said Trump's trade talks, including threats of terminating NAFTA, have been "divisive, confusing and reckless".

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Negotiations on rewriting the three-country NAFTA agreement began about a year ago.

The breakthrough increases pressure on Canada, which has been on the sidelines, to rejoin negotiations with the us and Mexico.

Officials said they hope Canada will agree to the terms by Friday (Aug 31), when the White House plans to formally notify Congress that Trump will sign the deal in 90 days.

Among the potential losers from a revised NAFTA are USA farmers, who have come to rely on exports to Mexico and Canada, and USA automakers, which have built complicated supply chains that depend on the easy movement of goods across borders. After all, the deal with Mexico covers the auto sector, which has always been his top NAFTA gripe.

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. While the country posted its best month of global trade ever in June - with a record level of exports headed south of the border - a significant hit to the trade file could jeopardize that performance, Shenfeld cautioned.

He has repeatedly demanded renegotiation of the 1994 agreement, which he blames for a decline in U.S. manufacturing jobs, especially in the auto industry.

Some experts interpreted the administration's signaling about a possible bilateral deal as an attempt to pressure Canada into a swift agreement on revising NAFTA, which the United States administration denied.

While neither of Trump's threats against Canada are new, Ashworth notes the USA president has upped the pressure by triggering the six-month NAFTA termination notice.

Shares of top automakers rallied Monday after the USA and Mexico reached a preliminary trade deal, ending months of uncertainty for auto production.

"We used to call it NAFTA".

NAFTA reduced most trade barriers between the three countries. But incoming Mexican President Andrés Manuel López Obrador has long opposed opening the country's energy sector, and his negotiators had pressed to revise the energy parts of the agreement with the United States.

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 United States, with a possible effect being the flight of auto manufacturing companies from the country.

The Toronto Stock Exchange's S&P/TSX rose 88.34 points, or 0.54 per cent, to 16,444.39, led higher by cannabis, consumer discretionary and metals stocks. Higher labor standards: The new deal would require that 40% to 45% of auto parts in cars sold be made by workers earning at least $16 United States dollars per hour.