US, Mexico reach trade agreement

WASHINGTON: The United States and Mexico reached a deal on Monday to replace the North American Free Trade Agreement (NAFTA) and talks with Canada were expected to begin immediately in the hopes of reaching a final agreement by Friday, a senior U.S. trade official said.

“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 are still issues with Canada but I think they could be resolved very quickly,” the official said.

The U.S.-Mexico deal would require 75 percent of auto content to be made in the United States and Mexico, up from the current level of 62.5 percent, and would require 40 percent to 45 percent of auto content to be made by workers earning at least $16 per hour, a second official said.

Mexican President Enrique Pena Nieto told US President Donald Trump in a phone call that his country wants to incorporate Canada into a newly-struck trade deal amid renegotiation of the North American Free Trade Agreement. Trump said he would call Canadian Prime Minister Justin Trudeau soon and that if Canada wants to negotiate fairly the United States would do so.

Later, Nieto said that a final trade deal with the United States and Canada is possible this week, as the US and Mexico wrapped up talks on an updated NAFTA.

Pena Nieto tweeted that he had spoken with Canadian Prime Minister Justin Trudeau on the phone and encouraged him to return to the negotiating table for a speedy final week of overhauling the North American Free Trade Agreement.

The United States and Mexico had been holding two-way talks to iron out lingering issues, before bringing Canada back to the table.

"I spoke with Canadian Prime Minister Justin Trudeau on the state of the NAFTA negotiations and the progress made between Mexico and the United States," Pena Nieto wrote on Twitter.