The US and Mexico have reached common ground on key trade terms as pressure mounts to complete renegotiation of the North American Free Trade Agreement. US President Donald Trump, a frequent critic of the existing deal, announced the apparent breakthrough on Monday.
A final deal would need sign-off from Canada, the third country in the treaty, which governs more than $1tr (£780bn) in annual trade. Talks started about a year ago after Mr Trump threatened to pull out. He has repeatedly demanded renegotiation of the 1994 agreement, which he blames for a decline in US manufacturing jobs, especially in the auto industry.
In a televised appearance at the White House, Mr Trump said the two sides had agreed on terms that made for an “incredible” deal that was “much more fair”. However, the final outcome remains in doubt. The White House appearance included a phone call with Mexican President Enrique Pena Nieto, who stressed the importance of an agreement that includes Canada. But Mr Trump told Mr Pena Nieto that he remained open to separate, bilateral deal with Canada. He also said he wanted to get rid of the name Nafta, which he said has “bad connotations”.
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