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US President, Trump, talks with Mexican President, Pena Nieto, on the phone to announce a Trade Deal US President, Trump, talks with Mexican President, Pena Nieto, on the phone to announce a Trade Deal  (ANSA)

US, Mexico Trade Deal

Against the odds, and after a year of monumental negotiations Mexico and the United States have successfully renegotiated the North American Free Trade Agreement. James Blears reports it's a triumph for Washington who have gained significant concessions, while simultaneously a lifeline for Mexico which could have annually lost 50 Billion dollars of trade with its giant neighbour if the talks had failed.

President Donald Trump describes the deal as "incredible", saying he wants the revamped treaty to be called the United States- Mexico Trade Agreement. From now on, 75 percent of all product must originate in Mexico or the United States, to be tariff free. Forty to forty five percent of all automobiles, must be manufactured by workers earning at least 16 dollars per hour...a costly blow for Mexican manufacturers. The entire Deal will be renegotiated every six years, but minus the looming threat of it being scrapped.

In a telephone conversation with President Trump, Mexican President Enrique Pena Nieto says the overall deal MUST include Canada, which temporarily stepped aside to facilitate this particular bi-lateral phase. But President Trump says he prefers a separate deal with Ottowa.  President Trump had once called the NAFTA the "worst trade deal in history", warning it had no long term future.  He`s now changed his tune saying it`s much fairer to the United States, especially in the agriculture sector.

For Vatican News, James Blears reporting...

Listen to James Blears' report
28 August 2018, 16:21