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U.S., Mexico agree to NAFTA overhaul

by Harvest Prude
Posted 8/27/18, 01:53 pm

President Donald Trump announced Monday he is scrapping the North American Free Trade Agreement (NAFTA) held by Canada, Mexico, and the United States in favor of a new deal that may exclude Canada. The agreement will be called the “United States–Mexico Trade Agreement” and would require more automotive components to be produced in North America by higher-paid workers.

The president has repeatedly criticized NAFTA, which reduced trade barriers among the three countries, saying it encouraged U.S. manufacturers to migrate South in search of low-wage labor. Trump raised the possibility of pursuing a separate deal with Canada or grafting it into this agreement. He said he would call Canadian Prime Minister Justin Trudeau to begin negotiations and also threatened to impose tariffs on Canadian cars. Trump made the announcement Monday in the Oval Office with Mexican President Enrique Peña Nieto present via speakerphone. “A big deal looking good with Mexico!” Trump tweeted.

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Harvest Prude

Harvest is a political reporter for WORLD's Washington Bureau. She is a World Journalism Institute and Patrick Henry College graduate. Harvest resides in Washington, D.C. Follow her on Twitter @HarvestPrude.

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