Trump and Mexican president sealing a deal to rename NAFTA, bring Canada in as well - (Trump has put China on hold)

Ross J Burland FXStreet

The United States and Mexico have reached a trade deal that would replace NAFTA which Trump says is very special for US manufacturers and farmers.

There are wires filtering through with details of the deal at the moment. Interestingly, Trump says that they will get rid of the name, NAFTA, once all details of the deal have been ironed out. However, the Mexican president said that Canada should now be incorporated into the deal. Therefore, this is not a bilateral deal. Trump has said that if Canada wants to negotiate fairly, the US will do that and that he will call Canada soon - (Mexico is hoping that this will materialise in a quick fashion).

UPDATES:

Trump says that on Friday, the Mexican deal will go to the lawmakers. Trump will terminate the existing NAFTA deal to go into this new deal that should be in place by November.
Trump says that they are starting talks with Canada immediately. Will either put tariffs on Canada's cars or reach a negotiated deal with them.
Trump has also said this is not the right time to talk to China about trade, but eventually, it will be the right time.

This is all risk friendly so far - but the Chinese part is something to take note of and while there are no truces there between the US and China's trade dispute, so far, that has been good news for the dollar bulls, in the short term, on inflationary expectations - (US tariffs implemented on Chinese imports = higher import prices).

What we had known so far:

US Mexico NAFTA agreement includes 10 years of data protection for biologic drugs.
Mexican president tells trump on call it is Mexico wish that Canada now be incorporated into the deal - Reuters witness.
Mexico president Pena Nieto: spoke with Justin Trudeau about state of NAFTA
Told Trudeau importance or Canada re-joining talks
Aim to conclude trilateral NAFTA talks this week
A spokesman for Canada foreign minister Freeland:
Signature needed on new NAFTA
Canada encouraged by optimism on NAFTA

US expects talks with Canada on trade to accelerate on Monday and wrap up by the end of the week – us trade official
Canada foreign minister Freeland expected to arrive for talks in Washington shortly - senior u.S. Trade official
US, Mexico deal would increase u.S. And regional content in autos to 75pct from current 62.5pct - USTR official
US, Mexico deal would see 40-45pct of auto content made by workers earning an average base wage of $16 per hour – USTR official
The united states and Mexico have reached a trade deal that would replace NAFTA -senior us trade official
US expects talks with Canada on trade to accelerate on Monday and wrap up by the end of the week - u.S. Trade official
Canada foreign minister Freeland expected to arrive for talks in Washington shortly - senior us trade official
US, Mexico deal would increase u.S. And regional content in autos to 75pct from current 62.5pct - USTR official
US, Mexico deal would see 40-45pct of auto content made by workers earning average base wage of $16 per hour - USTR official

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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