Why Canada’s exclusion from US-Mexico deal raises obstacle
WASHINGTON (AP) — President Donald Trump’s drive to revamp the North American Free Trade Agreement has taken an unexpected turn — one that complicates his effort to replace that deal with one more favorable to American workers.
Canada, America’s longtime ally and No. 2 trading partner, was left out of a proposed deal Trump just reached with Mexico and is scrambling to keep its place in the regional free-trade bloc — and fend off the threat of U.S. taxes on its vehicles.
By contrast, Mexico has cut a preliminary deal with the United States to replace NAFTA with a pact that’s meant, among other things, to shift more manufacturing into the United States.
In announcing the deal Monday, Trump said he wanted to call it the “United States-Mexico Trade Agreement,” pointedly omitting Canada.