The new agreement makes modest revisions to a trade deal Trump once called a “disaster,” easing uncertainty for companies reliant on tariff-free commerce among the three countries. U.S. stocks climbed on Monday toward records, while the Canadian dollar and the Mexican peso gained. The S&P 500 Index climbed 0.6 percent by 12:29 p.m. in New York.
Trump cited in particular provisions governing automobiles, raising the portion of their content that must originate within the region to 75 percent, from 62.5 percent, and requiring at least 40 percent of a car to come from workers whose pay averages more than $16 per hour. The president called those rules “the most important thing” for him.
The cosmetic changes to the NAFTA agreement provide some protections for workers but no so much that the fabric of the agreement is going to be fundamentally changed. That’s a significant development of North American markets since the trade they do with each other is at least as significant as what is done with the rest of the world.Click HERE to subscribe to Fuller Treacy Money Back to top