“U.S. President Donald Trump on Monday took credit for salvaging a trilateral free trade accord with Canada and Mexico, marking it as a victory in his campaign to reshape global commerce as financial markets breathed a sigh of relief,” Reuters reports. “The deal, announced on Sunday, 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,” Reuters reports. “U.S., Canadian and Mexican stocks were trading higher on Monday, with the benchmark S&P 500 index .SPX rising more than 0.7 percent and the Toronto Stock Exchange’s S&P/TSX index .GSPTSE gaining about 0.4 percent.”

“The deal effectively maintains the current auto sector and largely spares Canada and Mexico from the prospect of U.S. tariffs on their vehicles, although it will make it harder for global auto makers to build cars cheaply in Mexico,” Reuters reports. “‘It’s a promise made, promise kept,’ Peter Navarro, the White House trade adviser, told Fox News on Monday. ‘NAFTA is dead. We have USMCA.'”

“U.S. officials intend to sign the new trilateral deal by Nov. 30, Navarro said. It would then be submitted for approval by the U.S. Congress,” Reuters reports. “A senior source close to the trade talks said Mexico’s Videgaray, Trudeau’s chief of staff Katie Telford and White House adviser Jared Kushner helped over the weekend to facilitate Sunday’s agreement.”

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MacDailyNews Take: Hopefully, once the details are revealed, the new agreement will be an improvement over NAFTA.