On Monday, August 27th, US President Donald Trump officially signed a free trade agreement with Mexico.
According to reports, an agreement was reached between the US and Mexican authorities on revising the 1994 North American Free Trade Agreement.
Prior to telephoning Mexican President, Enrique Peña, Trump said that the US-Mexico Trade Agreement is “a beneficial deal for both countries,” whilst in the presence of the media.
In a bid to improve their bilateral relations, The US also intends on contacting Canada regarding the signing on the new document. However, Trump said that “irrespective of Canada’s response, we (US) will proceed with the agreement with Mexico.”
President Trump then went on to term the agreement as, “one of the largest trade deals ever made.”
He further added, “previously it used to be called NAFTA, however, now it would be called the US-Mexico Trade Agreement, we would be getting rid of the name NAFTA as it has a bad association because the US was severely hurt by the NAFTA.”
Ever since Trump was appointed as the President of U.S.A back in 2017, he had been pushing to renegotiate NAFTA, constantly terming it as the trilateral pact, in force since 1994.
He also termed it as, An agreement that encompassed more than $1 trillion in annual trade, which was a “disaster” for the US.
The latest development shows improvement in trade relations and in turn aided the US markets to hit latest record highs. Asian indices also picked up following the news and cheered with positive movement in stocks.