The United States and Mexico have reached a tentative agreement on an updated trade deal to replace the North American Free Trade Agreement. Once the deal between the U.S. and Mexico is finalized, Canada will rejoin the talks to replace the old agreement that took effect in 1994.
President Donald Trump has made revamping America's trade deals a major priority of his administration. He has enacted tariffs on various goods, including steel and aluminum, to force other countries to the negotiating table. His administration was under immense pressure to finalize the deal with Mexico before the country's newly elected president, Andrés Manuel López Obrador, takes office in December.
There is still work to do, as Canada will need to sign off of the agreement, which officials said would need to occur by September 1st to ensure that Mexican President Enrique Peña Nieto could sign the deal before he leaves office at the end of November.
As part of the deal, the U.S. will keep tariffs of 2.5 percent on cars made in existing factories and Mexico agreed to import more food from American farmers.
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