Though a breakthrough between the US and Mexico would leave complicated NAFTA issues involving Canada unresolved, it would increase the chances that the three countries will eventually reach a final accord to preserve a continental trade pact Trump had repeatedly threatened to terminate.
Advisers of incoming President Lopez Obrador hailed the new deal, saying it represented progress on energy and wages for Mexico's workers. It's also a win for Mexico. Many manufacturers have built complex but vital supply chains that cross all three NAFTA borders.
Trump said Monday during an Oval Office event that he'll be calling the emerging agreement the "United States-Mexico Trade Agreement". A breakthrough between the US and Canada on wages would be a big development, but Canada would still have to agree on that and all other issues.
Mexico and Canada have stood firm on the importance of maintaining the trilateral format of the NAFTA free trade deal, even as Trump has signaled a desire for individual deals with each country.
He also threatened to tax Canadian auto imports to increase the pressure on Canada's government.
He said that talks with Canada will begin soon and that teh country could join the agreement or sign their own bilateral deal with America depending on what was agreed. Those changes are meant to encourage more auto production in the United States.
Trump has also used Canada as a simplistic political device.
On Monday, they have been proved wrong by an unmitigated victory for the USA.
The Mexican peso was up as much as 1% against the U.S. dollar Monday.
This victory will lead to others.
Serie A report Juventus v Lazio 25 August 2018
The result lifted Massimiliano Allegri's side to six points after their opening two fixtures while Lazio are still looking for their first points.
But Canada's minister of foreign affairs, Chrystia Freeland, said that "once the bilateral issues get resolved, Canada will be joining the talks to work on both bilateral issues and our trilateral issues".
Canada's Foreign Affairs Minister Chrystia Freeland is now overseas on a diplomatic trip to Germany, Ukraine and France. Another core dispute is over Chapter 19 dispute panels, considered a deal-breaker for Canada, but which the US wants to eliminate. Mr. Trump tweeted Monday morning, making no mention of Canada.
"I think with Canada, frankly, the easiest thing we can do is to tariff their cars coming in".
In order to meet that deadline, negotiators must present Congress with a deal at least 90 days in advance.
Europe past year had a $151 billion surplus with the USA.
While a USA proposal to increase tariffs on cars imported from Mexico that don't meet new NAFTA content rules has always been a sticking point, that issue appears to have been resolved. "We want a good deal, not just any deal".
TRT World's Harry Horton reports.
The same factors apply to China, which is dependent on selling goods to the U.S. and stealing our companies' intellectual property.
"We are now inviting the Canadians in as well and hope that we can reach a fair and successful conclusion with them as well", the official told Reuters in an interview. There was no indication on Monday that Mexico had abandoned that position.
Interested in Donald Trump? He is a senior fellow for strategy and public diplomacy at the Center for the National Interest and the author of "Smart Power: Between Diplomacy and War".