The United States (US) and Mexico government are close to sign a new trade deal, which President Donald Trump declared as ‘a big day for trade’.
In a written statement released by White House on Monday (Aug 27), Trump said his Administration has secured a preliminary US–Mexico Trade Agreement that modernizes and rebalances the trade relationship to reflect the realities of the 21st century.
However, Trump insisted that the trade deal will not be a new North American Free Trade Agreement (NAFTA), which the controversial businessman seeks to terminate since taking office. While there are details to be meted out, the deal could send a signal that Trump is wiling to reach a compromise with regards to trade issues.
This is a positive development for market participants, who are nervous with the escalation tit-for-tat trade tariffs between the US, China and the European Union.