Rep. Roger Marshall, who represents the 1st District in Kansas and sits on the agriculture committee in the House, said the new deal with Mexico is a "crucial piece to the puzzle" for farmers.
We are in regular contact with our negotiating partners, and we will continue to work toward a modernized NAFTA. USA law requires a president to formally get Congress's approval for trade negotiations. Details on other issues including dispute resolution and USA rules on government procurement remained unclear.
The pact was described by the USA president as "a big day for trade" and it sent the S&P 500 and Nasdaq to fresh all-time highs, while the Dow broke 26,000 for the first time since January.
The president said he plans to "terminate" the existing NAFTA agreement, which now includes Canada.
"We had a very healthy second quarter but there's obviously still some concern that, if the trade files gets worse, we won't have enough momentum on exports and business capital spending to replace sectors like housing as a driver of growth", he said. This agreement would merely revise NAFTA, but it's still a win for a get-tough approach that has rattled some United States manufacturers.
But some industry groups said they wanted more clarity on final terms before celebrating the deal. Alternatively, the White House could just ship the new Mexico deal to Congress-but then lawmakers would be able to substantially rewrite the pact, which could scuttle all the agreements already reached with Mexico.
European shares rallied on Tuesday after the United States and Mexico reached a trade agreement, with autos enjoying another day of gains on an otherwise quiet day for company news. Mexico and the United States have reached a commercial understanding.
"If they'd like to negotiate fairly, we'll do that", he told reporters at an Oval Office press conference on Monday. It would also require 40% to 45% of the vehicle to be made by workers earning at least $16 an hour.
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Trump has frequently condemned the 24-year-old NAFTA trade pact as a job-killing "disaster" for American workers.
Another key part of the new trade deal increases the percentage of a auto that must be made in North America to qualify for lower-tariff import into the USA. In fact, "it's not clear Trump can actually terminate NAFTA without congressional approval", and Congress - which has 90 days to give any deal an up-or-down vote - has only authorized trilateral negotiations including Canada, he added.
The preliminary agreement with Mexico includes an option to renegotiate in six years and extend for an additional 16 years.
A spokesman for the Canadian foreign minister said they had been in touch with NAFTA negotiators, and added: "We will only sign a new NAFTA that is good for Canada and good for the middle class".
The new deal is provisional, and will need to be ratified by Congress in 2019.
Trump has rejected other multi-national deals, such as the Trans-Pacific Partnership (another trade pact) and the Paris Agreement on climate change mitigation, expressing a strong preference for one-on-one negotiations on trade and other matters with countries. Canada will have an option to sign into the agreement later if a breakthrough doesn't happen this week, he said.
The deal included measures to boost the automotive industry in the US.
"For years, Conservatives have asked for a more serious approach from the Trudeau government on NAFTA, but the Liberals have preferred domestic political posturing over advancing our economic interests", it read.