U.S. and Mexico Reach a Preliminary Trade Deal

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. "I will terminate the existing deal", Trump replied.

Talks to update Nafta began a year ago, but in recent weeks have been held between just the U.S. and Mexico. Significant breakthroughs between Mexico and the USA came during the past several days on automobiles and energy.

"This wasn't created to put pressure on anybody", a senior administration official said, before later adding that the United States planned to submit its NAFTA renegotiation plans to Congress by the end of the week with or without Canada's agreement.

At the same time, President Donald Trump threatened to keep Canada, the third member of NAFTA, out of any new trade agreement.

"I expressed the importance of them reentering the process with the goal of concluding an agreement this very week", Pena Nieto said on Twitter.

USA law requires a three-month waiting period after a deal is completed before Congress can ratify it. Mexico will swear in its incoming president, Andrés Manuel López Obrador, on December 1. Canada has not been involved this latest round of negotiations.

Now the Canadian government is in a tough position.

Canada's Foreign Minister Chrystia Freeland smiles after a meeting with Mexico's President-elect Andres Manuel Lopez Obrador in Mexico City, Mexico July 25, 2018.

Trump, who has had a strained relationship with Mexican President Enrique Peña Nieto over his demands that Mexico pay for a border wall, cited "closer" ties to America's southern neighbor on Saturday.

A USA industry source briefed on the talks said a deal had been reached.

Mexico has agreed to immediately begin purchasing as many agricultural products from the United States as possible, according to Trump.

Negotiations between the three trade partners have dragged on for more than a year and repeated threats by Trump that he would ditch the 1994 accord have roiled financial markets, putting pressure on the Mexican peso and the Canadian dollar.

Dispute resolution is a big deal for Canada.

Trump wasn't as clear.

Canada must now return, hat in hand, for a deal. Those changes are meant to encourage more auto production in the United States. It's a very simple negotiation.

Ahhh. Another successful day of pretending we're all on a television show in the books.

He said: "If they'd like to negotiate fairly, we'll do that". Specifically, the deal includes rules "to prohibit the importation of goods produced by forced labour, to address violence against workers exercising their labour rights, and to ensure that migrant workers are protected under labour laws".

News of the deal appeared to reassure investors that the Trump administration can make solid progress on trade deals.

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