STREAMING NOW: Watch Now

US-Mexico trade deal marks beginning of new friendship

The preliminary US-Mexico trade deal ...

Posted: Aug 28, 2018 8:33 PM

The preliminary US-Mexico trade deal announced Monday is a positive step forward in the negotiation process and hopefully one which will bring the United States, Mexico and Canada back to the table to revise and modernize the terms of the North American Free Trade Agreement (NAFTA). That the American and Mexican negotiators could agree to progress past the sticking point involving the automobile industry and rules of origin is a sign of not only the potential for negotiating "NAFTA 2.0" but also for a more productive US-Mexico relationship.

NAFTA was originally negotiated 25 years ago, before the internet changed the way we do business and when Mexico had a much more inward-looking economy. Mexico has transformed dramatically since NAFTA went into effect -- in large part because of NAFTA -- evolving in everything from its work force, consumer culture and technical know-how to its integrated supply chains, industrial capacities and global trading networks.

Business, economy and trade

Economic policy

Economy and economic indicators

Free trade treaties and agreements

International relations

International relations and national security

International trade

International trade law

Trade and development

Trade regulation and policy

Trade treaties and agreements

Treaties and agreements

Canada

Continents and regions

Donald Trump

Intellectual property

Intellectual property law

Latin America

Law and legal system

Mexico

North America

Political Figures - US

The Americas

Trademark law

Trademarks

United States

Still, Mexico's economic expansion over the last quarter century is inextricably linked to the US economy, with around 80% of its exports going to the United States. In short, Mexico has much to lose if NAFTA negotiations ultimately fail.

Thus, the preliminary trade deal is significant for the success of a more comprehensive, renegotiated "NAFTA 2.0" (or whatever they decide to call the agreement to make it more politically palatable).

Despite the strong-arming negotiating tactics of the Trump administration, Canada wants an updated NAFTA, too. With Canadian Foreign Affairs Minister Chrystia Freeland heading to Washington, Canada seems willing to move forward with negotiations related to the preliminary terms struck between the United States and Mexico.

Regarding auto trade and rules of origin, the two parties agreed that 75% of auto parts be made in the United States and Mexico, as opposed to the current 62.5%. They also expanded the timeline horizon for the agreement, making it a 16-year agreement to be reviewed every six years. This represents a softening of the US stance on the so-called "sunset clause" and Trump's original demands for a five-year automatic expiration of the agreement, which was a deal-breaker for Mexico and Canada.

A revised, modernized and expanded NAFTA was always the goal for the business community, and, indeed, markets responded favorably to news of the preliminary deal. Increasing opportunities for the free flow of goods and services, finding willing buyers and sellers, and creating efficiencies in the market are good for the American, Mexican and Canadian economies.

And just as significantly, it may mark the beginning of a new and improved US-Mexico relationship, which has suffered tremendously as a result of the difficult NAFTA negotiations and the often-negative rhetoric President Donald Trump has used with respect to Mexico. The election of the leftist, nationalist candidate Andrés Manuel López Obrador (popularly known as "AMLO") as the next Mexican President is certainly some evidence of the strained alliance between the United States and Mexico.

López Obrador ran on a campaign as critical of Trump as he was of current Mexican President Enrique Peña Nieto. On the campaign trail, López Obrador said that "Mexico and its people will not be the piñata of any foreign government" and promised to stand up to Trump. Indeed, López Obrador's popularity increased with the "Trump effect," which galvanized Mexicans looking for strong leadership in the face of Trump's attacks.

For the moment, at least, López Obrador has signaled his approval of the preliminary deal between the United States and Mexico. His trade advisers worked with the Peña Nieto team to negotiate with the US, lending support to the talks and establishing Mexico's new administration as more pragmatic on economic policy issues.

This is good news for the future of NAFTA, trade relations and the business community -- it is also good news for the Mexican economy. López Obrador's economic views have tempered since he first ran for president in 2006, and he now seems less of an interventionist and more motivated to maintain macroeconomic stability in Mexico once he takes office on December 1.

This preliminary NAFTA deal may also set the stage for the United States and Mexico to deal with a host of other thorny and complicated issues, including immigration, fighting drug trafficking and border security. With luck, this is the beginning of a more balanced bilateral relationship and a modernized NAFTA. If coupled with continued market-friendly economic policies in Mexico, this will be the foundation for a broader agenda and enhanced cooperation between the two countries.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 309223

Reported Deaths: 7153
CountyCasesDeaths
DeSoto21005250
Hinds19989411
Harrison17590303
Rankin13388277
Jackson13169243
Madison9965212
Lee9900170
Jones8319161
Forrest7554149
Lauderdale7232237
Lowndes6306144
Lamar614685
Lafayette6081118
Washington5296133
Bolivar4778130
Oktibbeha458097
Panola4461103
Pearl River4447142
Warren4310119
Marshall4302103
Pontotoc417672
Monroe4063132
Union405175
Neshoba4009176
Lincoln3892109
Hancock373785
Leflore3471124
Sunflower332090
Tate325984
Pike3226105
Scott311973
Yazoo305369
Alcorn301566
Itawamba297977
Copiah294365
Coahoma290779
Simpson290486
Tippah285368
Prentiss276659
Marion266479
Leake262473
Wayne261541
Grenada257385
Covington255380
Adams247082
Newton246161
George238947
Winston226181
Tishomingo222867
Jasper220248
Attala213673
Chickasaw205857
Holmes187272
Clay183354
Stone179733
Clarke178177
Tallahatchie176240
Calhoun165632
Yalobusha160236
Smith159734
Walthall131143
Greene129633
Lawrence126823
Noxubee126634
Montgomery125842
Perry125238
Amite121041
Carroll121026
Webster113932
Jefferson Davis105932
Tunica103425
Claiborne101430
Benton97525
Kemper95728
Humphreys94732
Franklin83123
Quitman78916
Choctaw74417
Wilkinson65329
Jefferson64928
Sharkey49817
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 522512

Reported Deaths: 10790
CountyCasesDeaths
Jefferson755371494
Mobile39129799
Madison34124500
Tuscaloosa25408444
Montgomery24059573
Shelby23225242
Baldwin20730302
Lee15638166
Calhoun14358311
Morgan14171273
Etowah13705348
Marshall12012220
Houston10416279
Elmore10024203
Limestone9862148
Cullman9509191
St. Clair9486236
Lauderdale9280233
DeKalb8762183
Talladega8127173
Walker7151276
Autauga6763106
Jackson6762110
Blount6532133
Colbert6236132
Coffee5436113
Dale4781111
Russell431239
Franklin421382
Chilton4130110
Covington4069115
Tallapoosa3922148
Escambia390374
Dallas3528150
Chambers3519122
Clarke347360
Marion3076100
Pike306676
Lawrence296395
Winston273272
Bibb256761
Marengo248561
Geneva246475
Pickens233259
Barbour227155
Hale218675
Butler213268
Fayette209660
Henry188444
Cherokee182744
Randolph177841
Monroe173140
Washington165538
Macon156548
Clay150255
Crenshaw149557
Cleburne147041
Lamar140034
Lowndes137353
Wilcox124727
Bullock122040
Conecuh109728
Perry107726
Sumter103332
Coosa99428
Greene91434
Choctaw58824
Out of AL00
Unassigned00
Tupelo
Partly Cloudy
74° wxIcon
Hi: 76° Lo: 44°
Feels Like: 74°
Columbus
Clear
75° wxIcon
Hi: 76° Lo: 47°
Feels Like: 75°
Oxford
Partly Cloudy
72° wxIcon
Hi: 74° Lo: 40°
Feels Like: 72°
Starkville
Clear
73° wxIcon
Hi: 75° Lo: 45°
Feels Like: 73°
Sunshine should bring continued warmth into your Tuesday. But going into the night, a cold front approaches. This will bring a quick round of light to moderate showers overnight and a late-season frost that could damage or kill sensitive plants.
WTVA Radar
WTVA Temperatures
WTVA Severe Weather