U.S. stock markets surged Monday after President Trump announced the United States and Mexico have reached a preliminary trade agreement, which is part of the Trump administration's effort to rewrite the North America Free Trade Agreement.
President Trump has called NAFTA the "Worst" trade deal in history, but an analysis of key provisions finds limited improvements, some compromises, and quite a few flaws in this new agreement.
Canada and Mexico rejected that idea because they believe "Companies needed greater certainty about the deal remaining in place to make the sort of long-term investments that drive trade." So in this new U.S.-Mexico trade pact, the sunset clause stipulates that the new trade agreement is good for 16 years with a provision for review after six years.
So why did stock markets surge Monday despite an imperfect deal? President Trump's tough trade talk, threats of trade wars, and rounds of tariffs against friends and foes alike have created a great deal of uncertainty in stock markets.
The announcement of a preliminary trade deal between the U.S. and Mexico assures investors that a trade war is not imminent and the Trump administration is willing to settle for new trade deals.
If it wants to sign a new NAFTA deal before the new Mexican president is sworn in on December 1, the Trump administration must send Congress the new trade deal by September 1.
Some Republican lawmakers already warned that a new trade deal must include Canada.
http://thefederalist.com/2018/08/31/trumps-new-trade-deal-mexico-isnt-yuge-may-help-midterms/
President Trump has called NAFTA the "Worst" trade deal in history, but an analysis of key provisions finds limited improvements, some compromises, and quite a few flaws in this new agreement.
Canada and Mexico rejected that idea because they believe "Companies needed greater certainty about the deal remaining in place to make the sort of long-term investments that drive trade." So in this new U.S.-Mexico trade pact, the sunset clause stipulates that the new trade agreement is good for 16 years with a provision for review after six years.
So why did stock markets surge Monday despite an imperfect deal? President Trump's tough trade talk, threats of trade wars, and rounds of tariffs against friends and foes alike have created a great deal of uncertainty in stock markets.
The announcement of a preliminary trade deal between the U.S. and Mexico assures investors that a trade war is not imminent and the Trump administration is willing to settle for new trade deals.
If it wants to sign a new NAFTA deal before the new Mexican president is sworn in on December 1, the Trump administration must send Congress the new trade deal by September 1.
Some Republican lawmakers already warned that a new trade deal must include Canada.
http://thefederalist.com/2018/08/31/trumps-new-trade-deal-mexico-isnt-yuge-may-help-midterms/
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