The President of the United States announced that a trade agreement has been reached with Mexico. The two countries were engaged in a long process of negotiations, since Trump has been critical of the existing North American Free Trade Agreement (NAFTA) and stated he wanted to abolish it even during his election campaign.
Trump has proposed a new name for the agreement between the US and Mexico, and that is the United States-Mexico Trade Agreement (USMTA). The President stated that the new agreement is better for the United States and that Mexico has agreed to fairer terms. However, there have not been any other expert reports on the details, so the exact conditions remain to be known.
The other country affected by NAFTA is Canada. In that regard, Trump said that talks with Canadian PM Justin Trudeau will begin soon. Mexico has also called for Canada’s involvement.
This news has had a favorable impact on the stock market.
