Why Canada’s exclusion from US-Mexico deal raises obstacle

Mexican Secretary of Economy Ildefonso Guajardo, center, speaks to Jesus Seade, left, designated chief negotiator of Mexican President-elect Andres Manuel Lopez Obrador, as Mexican Foreign Minister Luis Videgaray, far right, speaks during a news conference at the Mexican Embassy in Washington, Monday, Aug. 27, 2018. The Trump administration and Mexico have reached a preliminary accord to end the North American Free Trade Agreement and replace it with a deal that the administration wants to be more favorable to the United States. (AP Photo/Pablo Martinez Monsivais) –The Associated Press

WASHINGTON (AP) — President Donald Trump’s drive to revamp the North American Free Trade Agreement has taken an unexpected turn — one that complicates his effort to replace that deal with one more favorable to American workers.

Canada, America’s longtime ally and No. 2 trading partner, was left out of a proposed deal Trump just reached with Mexico and is scrambling to keep its place in the regional free-trade bloc — and fend off the threat of U.S. taxes on its vehicles.

By contrast, Mexico has cut a preliminary deal with the United States to replace NAFTA with a pact that’s meant, among other things, to shift more manufacturing into the United States.

Advertisement

In announcing the deal Monday, Trump said he wanted to call it the “United States-Mexico Trade Agreement,” pointedly omitting Canada.