Trump rewrites rules of trade with new deal

By Agencies

US President Donald Trump on Monday said a new free trade agreement with Canada and Mexico would support hundreds of thousands of US jobs, marking it as a victory in his push to reshape the lines of global commerce.

Financial markets breathed a sigh of relief that the United States and Canada had reached a last-minute deal on Sunday to preserve a single trading zone in North America after serious worries it could fragment under Trump’s trade pressures.

The deal is a reworking of the 1994 North American Free Trade Agreement (Nafta), which underpins $1.2 trillion in trade between the three countries. Trump had described Nafta as a bad deal for Americans and threatened to eliminate it as part of his “America First” agenda.

The new United States-Mexico-Canada Agreement (USMCA) is aimed at bringing more jobs into the United States, with Canada and Mexico accepting more restrictive commerce with the United States, their main export partner. “These measures will support many – hundreds of thousands – American jobs,” Trump said in remarks at the White House. “It means far more American jobs, and these are high-quality jobs.”

Calling the new accord “truly historic news for our nation – and indeed, for the world,” the US leader said he hoped to sign it by the end of November.

Pointing to his combative attitude towards China – with which the United States is engaged in an escalating trade war – Trump said his strategy was bearing fruit and that “China wants to talk very badly.”

This article provided by NewsEdge.