'It's a Big Deal for Trade': Trump to Terminate NAFTA, Announces New Agreement with Mexico

WASHINGTON – President Donald Trump reached a deal with Mexico Monday on a new trade pact. He explained he plans to terminate the North American Free Trade Agreement and replace it with "the United States-Mexico Trade Agreement."

"We'll get rid of the name NAFTA," the president said. "It has a bad connotation because the United States was treated very, very badly for NAFTA."

"It's a big day for trade. It's a big day for our country," Trump told reporters.

A big deal looking good with Mexico!

— Donald J. Trump (@realDonaldTrump) August 27, 2018

Mexican President Enrique Pena Nieto was patched in by phone, calling the deal "very positive" for both the US and Mexico.

Trump says the details are still being finalized but noted the deal is good for trade, jobs, and farmers.

"Our farmers are going to be so happy," Trump said. "Mexico has promised to immediately start purchasing as much farm product as they can."

Trump finalized negotiations Monday following talks Sunday led by Trump's son-in-law and White House adviser Jared Kushner, along with US Trade Representative Robert Lighthizer.

Lighthizer told Trump he expects the US-Mexico deal would be signed by the end of November.

In the meantime, the White House will begin negotiating with Canada to either add their country to the trade agreement with Mexico or strike a separate deal.

"One way or another we'll have a deal with Canada," Trump said. "It'll either be a tariff on cars or it'll be a negotiated deal. Frankly, I think tariff on cars is a much easier way to go. Perhaps, the other would be much better for Canada."