The presidents from the three countries have signed today in the Argentinean city of Buenos Aires a new trade agreement that substitutes NAFTA. The treaty still needs to be ratified by all three countries.
Green light to the new NAFTA. Donald Trump, Enrique Peña Nieto and Justin Trudeau have signed today in Buenos Aries a renewed trade agreement between the three countries that will carry the name UMSCA.
The treaty must be ratified by the congresses of the three involved countries before it comes into effect. Despite the signing, the United States has not solved the tariff situation with Mexico and Canada.
“This is a model agreement that changes the trade landscape forever”, claimed Trump during the G20 Buenos Aires summit. The president of the United States threatened to quit such agreement several times, qualifying it as “the worst trade deal ever”.
The North American Free Trade Agreement (NAFTA) was in force ever since 1994. The signing of the new agreement is produced during the last day of Peña Nieto’s mandate, who will be substituted tomorrow by Andrés Manuel López Obrador.
The new treaty agreement was decided during the end of September, thirteen months after the beginning of negotiations. During the first revision of the agreement, the United States intention was to erase the possibility of using raw material that came from outside of Mexico or Canada in the production of clothing items, mainly in order to stop the import of Chinese products into the United States.