The US and Mexico have agreed to revamp Nafta, the North American Free Trade Agreement, in what Donald Trump called a "really good deal" for both countries. The US President, who has frequently criticised the existing deal, made the announcement on Monday.
Mr Trump said the US and Mexico had agreed on terms that would make for a deal that was "much more fair". Negotiators have been rewriting the Nafta treaty over the past year, but in the past five weeks, Canada has not been part of the discussions. "We will see whether or not we decide to put up Canada or just do a separate deal with Canada," Mr Trump said.
He also threatened Canada with tariffs on cars and said he wanted to get rid of the name Nafta, which he said has "bad connotations".
Nafta covers more than $1tn (£780bn) in annual trade. The update is to include provisions to govern intellectual property, digital trade and investor disputes, among other issues. In the preliminary agreement announced on Monday, the US and Mexico agreed that 75% of a product must be made in the two countries to receive tax-free treatment - higher than in the existing deal. On cars, the two sides also settled on rules that will require 40% to 45% of each vehicle to be made by workers earning at least $16 an hour to discourage firms from moving production to lower-wage Mexico.
The pact would last for 16 years, the US said, and be reviewed every six years - but will not carry the threat of automatic expiration.
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