The U.S. and Mexico struck a trade deal on Monday that paved the way to replace NAFTA, the current agreement between the two nations and Canada.
President Donald Trump said the deal would be called The United States-Mexico Trade agreement, getting rid of the NAFTA name. Trump added that the deal with Mexico is also very special for farmers and manufacturers.
Officials were in Washington trying to work out the issues as the Trump administration pushes to remake the 1994 agreement with the U.S., Mexico and Canada. There was some hope that a new NAFTA could be solidified before Mexico’s government turnover on December 1.
“I’m certainly hopeful that we get a good agreement,” said Carla Hills, a former U.S. trade representative and chief NAFTA negotiator, on CNBC’s “Squawk Alley.” NAFTA is “25 years old and it needs to be upgraded. I have my fingers crossed that we’ve done a good job and we get to NAFTA 2.0.”
Trump said Mexican officials promised the Latin American country would start buying as farm product as possible from the U.S.