President Trump has announced the end of NAFTA, and the beginning of a new agreement with Canada and Mexico.
The new trade deal will be known as the USMCA, the United States-Mexico-Canada Agreement. President Trump says hundreds of thousands of new jobs will be created.
Markets responded favorably to the news, rising by hundreds of points in the early afternoon.
According to Reuters:
“U.S. President Donald Trump on Monday said a new free trade agreement with Canada and Mexico would support hundreds of thousands of U.S. 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, 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.”