Automakers jump as Trump-Mexico deal averts tariff doomsday

U.S. President Donald Trump shakes hands with Mexico's President Enrique Pena Nieto during the their bilateral meeting at the G20 summit in Hamburg Germany

Wall Street traders send Nasdaq to record high following new trade agreement between US and Mexico

And I think that we're going to look closely at some of the other things that have been agreed to between the USA and Mexico and see just whether or not they can be made to work in the Canadian context.

US law requires Trump to give Congress 90 days' notice of his intention to sign a new trade deal.

"Today's news of a trade agreement between the United States and Mexico confirms that the Trudeau government has failed to advance Canada's trade interests".

Freeland, who later met with Mexican officials on Tuesday evening, said she is due to dig into detailed discussions with Lighthizer on Wednesday.

"These concessions are really going to be important for workers in Canada and the United States", she told reporters after meeting with U.S. Trade Representative Robert Lighthizer.

"For free-trade economists that might be a black eye, but for the USA and Trump it must surely be seen as a major victory and validation of his extraordinary strong-arm tactics". The same tariffs were applied to Canada - the top foreign source of both metals to the USA - and Trudeau's team will be looking for an exemption as part of any deal.

But outside experts say the American law governing how Congress approves trade deals - the oft-cited reason for the time crunch - permits much more flexibility.

"Without Canada there can be no new "NAFTA" deal". We solved the first part of this equation.

The White House plans to notify Congress on Friday of its intention to enter into a new free trade agreement, to provide the required 90 days' notice that would allow NAFTA 2.0 to be signed by December 1, when Mexico will install a new president.

"In areas like digital trade, financial services, IP, all of the kinds of things you think of as a new economy, we are setting newest high-level standards that are not only better than NAFTA 1.0, but are also better than TPP or, I would suggest, any other agreement that's been negotiated", said the administration official, who called the new agreement "innovative". USA demands have ranged from ending those tariffs to scrapping a pricing system for milk ingredients that hurt US exports of milk proteins.

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Kenya's president will also sit down with USA business executives to discuss investment in his country during his trip. Despite Trump's personal background and style, these religious leaders are mostly on the President's side.

"We will engage in a positive way and look forward to ultimately signing a deal as long as it's good for Canada and good for middle class Canadians", Trudeau told reporters on Tuesday.

But that will mean compromises on both sides on issues that have created friction between the neighboring countries, notably Canada's dairy trade rules and mechanisms to settle disputes and intellectual property protections, as the leaders each try to claim victory.

Trump was quick to proclaim the agreement a triumph, pointing to Monday's surge in the stock market, which was fueled in part by the apparent breakthrough with Mexico.

But Washington backed away from a strenuously-opposed provision to require the three nations to renegotiate the trade pact after five years. What he didn't say is he wants an end to Canada's supply management system.

Freeland said officials will delve deeply into specific issues Wednesday.

Two of Donald Trump's top lieutenants turned up the heat on Canada to open up the protected sector that the USA president has repeatedly attacked.

Trump said Monday he would call Canadian Prime Minister Justin Trudeau very soon, adding that their northern neighbor has two choices - either it can join the U.S. -Mexico trade deal, or make a separate trade agreement with the U.S.

That would pave the way for tariff-free access to the Canadian market by the much larger American dairy and poultry market.

The NAFTA renegotiations had dragged on for a year before the tentative agreement with Mexico was announced Monday.

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