fact that talks have been on-going on a three party deal since this time last year. talks began august 16th, 2017. at this point canada is not going to want to look like it is capitulating to the trump administration demands, despite the fact there's deadline at the end of the week for a tri lateral deal that the mexican outgoing president could sign. that said, we'll see what the president says, what ground they have been able to cover with the mexican delegation over the last several weeks, and especially important for markets and for companies, what it means for manufacturing, what it means for specifically automakers and that business because we know so many cars and car parts traverse the u.s., mexico border every day, every week, every month. look for a potential immigration element. something the trump administration had been discussing with the mexican delegation immediately after the election we'll see what the deal will entail >> indeed it has been a market

moving session even before the actual announcement, guys. kansas city southern, gm, caterpillar leading the markets. not to mention the outperformance by the canadian dollar and mexican peso. >> lean hog futures, pork has been a lightning rod area in terms of tariffs and trade talks with mexico as well. >> amen jabbers, i know it is early, does it feel like an agreement or agreement to talk about a future agreement. >> we'll see white house officials are buttoned up about what the president is announcing. we'll see this i am told there might be a new format, i am told the president may be on the phone with someone on this announcement, possibly the president of mexico or other

high ranking officials watch for a new format in the way the president presents this. we'll see if that's the case officials tell me it is very fluid in terms of the rollout. earlier this morning people weren't sure if this would be announced at all or whether it would come from lower ranking officials. the president had a tough week on the legal front is looking for an opportunity here to demonstrate strength, to demonstrate he promise he could renegotiate nafta and is doing that a lot of this is the president showing he is living up in terms of promises to his base. workers feel displaced by nafta and by globalization generally this is as much messaging as it is negotiating and we'll see how much of the negotiating details we actually get from the president here. >> there has been no word from canada this is nafta, not just the u.s. and mexico, so what benefit does the president have from getting out and making it seem like

there's real progress in this at this stage is it to pressure canada to the table and perhaps bend in ways they haven't shown a willingness up to this point >> reporter: the president can present this as a faito put put pressure on the canadians or something similar to it, present it as two sides of the three sided triangle have been completed, now canada, time for you guys to sign up here we'll see if it has the political impact the president wants. the president has been feuding with the canadians he made himself relatively unpopular in canada by feuding with their political leadership, his behavior at events, political events in canada, not going over tremendously well among voters there we'll see whether the canadian government itself will be able to politically get itself to position where it falls in line

with president trump but the president here clearly hoping to undercoscore a deal i almost done and canada, you better get on board. >> a spokesperson from canada saying we will only sign a new nafta good for canada and good for the middle class canada's signature is required kayla, is this a true try lateral under which canada's signature is required or strict by later -- bi lateral with mexico >> the legislation that allows the administration to do this on a fast tracked basis, the administration would have to ask congress for permission to essentially hold bilateral negotiations that process would take another 180 days this would not be a quick resolution the administration only has the permission so to speak from congress to do a tri-lateral

deal on the canadian front, they feel if they reach a deal with mexico, they force canada to the negotiating table, but there's a view within the administration now that the mexican election is behind us july 1st, potentially the forthcoming re-election of prime minister trudeau could throw a wrench into the mix. one of the reasons trudeau has been seeming to put up a tougher stance against the u.s. because he is now in active campaigning mode i spoke to a senior administration official about this a few weeks ago this person told me look, it wouldn't be good for trudeau, auto tariffs the administration is trying to line up other tools it has on the trade front to try to get canada to the negotiating table. canada says it won't be bullied. we'll see what today's deal does to potentially foam the runway for them to come on board. >> see you again in a few minutes with more on this.

let's bring in seema mody, following the nasdaq it crossed over the 8,000 mark >> jon, hopes of progress on the trade front are the clear driver behind stocks today. the nasdaq extending its push into record territory, breaking above 8,000. nasdaq closed above 7,000 in early january, it has taken roughly six months for the nasdaq to get above this 8,000 threshold. in terms of stocks that led the nasdaq higher, look at the one month performance of faang names, led by apple, up 14% in the past four weeks. amazon, netflix up about 5%, followed by facebook nasdaq has been the outperformer this year, outpacing games in the s&p 500 and do you industrials. speaking to a number of analysts last hour, they say it is trade tensions easing, signs of trade tension easing that helped tech

stocks outperform. a positive move in chinese stocks overnight provided a setup for stocks today, and the earnings story which is expected to continue with the u.s. dollar softening in the past one week important to note, stocks leading the nasdaq not just faang names, we're seeing wynn resorts, chip stocks and jd.com. back to chips, look at the philadelphia semiconductor index, up 2% today as well as the nasdaq biotech index we're seeing broad level participation in tech stocks, biotech and chips. and that's helping the nasdaq continue its run, now above 8,000. up 1% in today's trade back to you. >> thanks for wrapping that up for us from the nasdaq seemamodi.

thank you. i saw a few different notes from market watchers over the weekend, eliciting comparisons to '99, 2000 what do you think? >> overconfidence everywhere, seeing it across the public markets and private sector we're in an 8 year bull market on the public, nine year on the public, and there's never been more capital coming into the asset class. people are euphoric. lots of billion dollar plus companies and ipos coming this year, but it is a lot of overconfidence it goes back to the economic cycle we're in i think you'll see a downturn, not sure whether over supply and confidence will require a pull back. seeing a little weakness in consumer tech space and you'll see small areas of weakness as well on the private side in the next couple of years. >> to that point, we have seen and i realize the chinese tech stocks today are rallying, but

in general we have seen divergence some are suggesting the chinese tech stocks turning over could be a harbinger of bigger -- >> they're still strong in terms of opportunities, consumption growth in china. i think the biggest impact on chinese stock is the trade war that's happening i think a lot of people are nervous that many companies talked about coming to the u.s., alibaba, et cetera, will be pushed back. >> broad based, looking at the nasdaq for that. >> i get nervous when people talk 1999. valuations are not the same. earnings situation is not the same much stronger generically. and the u.s. economy is not the same it is a stronger economy than we saw in 2000. with regard to where the markets are, the most remarkable thing

is the rotation. remember, momentum stocks, nasdaq being classic, momentum stocks had a big dip when we had concerns on trade and slowing economy several months ago they're now back you look at big momentum stocks, cisco, amazon, netflix, visa, they've all come back again. that's a huge help to the market on top of that, one thing while the president's legal troubles may not move the markets, trade war and trade tension moves the market every day when there's positive trade war news, we see markets move to the up side. i don't know if you can put up the full screen, the dollar since the beginning of the month, we have seen more positive trade news. the dollar is down 2%, and reliably we have seen emerging markets move up, metal stocks move up, chinese internet stocks move up, we have seen u.s. tech stocks generally move up, semi conductors move up, almost every day they move up in exactly the same way

when you add that to the momentum stocks coming back, you get a real rotation. finally we see all of the low volatility stocks come in. when tech comes in, lily hit new highs, procter & gamble. this rotation is why you have rotation on those stocks now it is remarkable and it is the u.s. economy and it is the state of the earnings situation, even x the tax cuts, we outperformed the world on earnings. a lot different than 2000. >> what do you do as an investor at a time like this? previous down turns or even prelude to down turns are good time for early stage investors to bet on the right technologies at the same time, you say there's overconfidence how do you know you're not overconfident? >> there's oversupply in specific parts of the market you see $100 billion firms and plus most friends are raising billions of dollars in follow on

funding. that pushes them towards the later end of the stage i tend to look for mid to early growth and i think you're seeing some seams in specific markets, specific markets, hardware, for example, hardcore tech, are interesting opportunities. starting to see that happen in china and the u.s. and europe. i think there are opportunities along the seams of technology where they're enabling businesses to come up with better products, better driverless cars, better ways to manage the sales force, manage your consumers i think you'll see a pull back in consumer tech and consumer services that have been hot in the last five years. >> you talk about caution creeping into the private market, where are they putting their money instead? >> many folks i know well are pushing the late stage, large $10 billion, $14 billion financials, they're deemed safe.

or they're going very early making long term bets, 10 to 20 year bets of certain technologies and certain companies. >> do you think ipos are going to succeed in the next year? >> i think so. i think you see a mixed result so far by and large, i say more than tech company ipos have done well, the other half not as well. >> how much better to go public, if not now, when we're at historic highs on the nasdaq throwing money at companies. yet big names aren't coming. >> being public is a horrible process. you see it across the board, whether tesla guys. >> and that's not changing. >> why not take a $10 billion check from softbank, stay private forever. >> you know how depressing that is for all of us to watch this, so the american can't participate. >> short term nature of th market itself, the public markets, is a big hinderance for

tech companies you can't build a ten year, 20 year public successful company thinking about the core results. >> starting to get headlines from the president on what will be tape we'll see in a moment, including what may happen to the nafta name for that, eamon javers >> reporter: the president saying this is a good agreement for both countries, united states and mexico. whether he can get approval to change the name with mexico and leave canada out of it, seems to be the gist of the comments from reporters in the room. we should see video momentarily as soon as reporters have an opportunity to come out and play it back for us >> meanwhile, this will include

some changes to how auto content works? >> one of the key questions, what thresholds will auto content levels be set and a pay component, a mandatory minimum wage for auto workers or some percentage of auto workers involved in putting together the vehicles so all of that has been something of a moving target we'll see if this deal specifies all of that or agrees to agree to something in the future we don't know what the president is agreeing to i was talking to white house officials before the event, they said we're not going to get ahead of the president and roll out anything in advance. >> reuters is reporting that the president has called the mexican president to congratulate him on that deal. bob, sounds like you have thoughts about this. >> i hope this is some political effort to bring canada into the agreement because i hope everyone was listening to kayla when she was talking, explaining to do a bilateral agreement, it

is a separate deal take another 180 days to remove mexico, create a separate deal nafta is a tri-lateral agreement. pay attention to kayla i think this is creating a lot more difficulties. i'm hoping this is just a political game to bring the canadians in. >> to that point, another headline crossing, the mexican president telling president trump on the call it is mexico's wish that canada now be incorporated into this deal. >> yes and that has been the expectation of how this process would go, despite the semantics, that he is renaming it to be a u.s. mexico deal reuters is reporting that canada is expected to join talks as soon as today, that the foreign minister of canada freeland is on the way to washington, could re-enter an accelerated set of talks expected to wrap by end of the week we reached out to the u.s. trade representative for confirmation of that. reuters is reporting some

specifics about what the content requirement for autos would be reuters saying according to a senior u.s. trade official, the deal between the u.s. and mexico would increase u.s. and regional content in cars to 75%, up from the current requirement of 62.5%. as to that wage component, this deal according to reuters would seek 40 to 45% of auto content made by workers earning average base ways of $16 -- wage of $16 an hour. behind that, if the president of the united states wants to keep production from moving outof the u.s. for the sake of cheap labor existing in mexico alone, raising the wage on average for the workers producing those vehicles would take away that incentive from the companies that's a provision that's going to get some spift push back from swsh swift push back that argue they make them there because

they sell to the mexican consumer or other reasons other than cheap labor i heard automakers privately when this provision was first aired a few months ago describe it as soviet in nature to be demanding a wage be set for the type of production we're talking about here i imagine we will get some push back from the auto industry when this is official >> kayla, it is not clear exactly what the president is proposing here i mean, he's got authorization to negotiate this on the fast track under nafta. is this name change supposed to be just a pressuring tactic, to change the name, they have to go through the entire process with congress, if this were a bilateral deal isn't that what you were saying? >> yes, precisely, jon to change the name, you have to basically introduce a new treaty, have it ratified by congress, called something completely different, and this is something that while the

president is saying this from the perch of the oval office, mexican officials have not acknowledged whatsoever. when you ask them about the issues they're working on behind the scenes with the u.s., they've said we won't even disclose the elements of what agreements we reached, they all require canada to be on board. they don't acknowledge this as just a u.s., mexico deal they're clear about this being one with the end result being a tri-lateral deal though it is clear the president wants to use the semantics here to pressure canada. >> kayla, any update on the sunset clause? it was a huge sticking point in all of the negotiations. have they given more details on that >> we asked and asked the u.s. and mexican side where things stand there. i heard that last week that there was an expectation that the u.s. would drop the demand for this deal to be renewed every five years that had been a huge point of contention, not only on the

canadian and mexican side and among the business community who argued that if we're going to make long term investments, we need to know this is a deal around longer than five years. that being said, the argument of the u.s. trade representative, robert lighthizer is who would enter into a lease that just goes on in perpetuity and you never renegotiate it he wanted to essentially create some milestones or mile markers every few years so all of the parties had to get back in the room and talk about whether it was still a good deal. but the expectation is that the u.s. in order to get a deal done would have to drop that provision because it is such a poison pill or viewed as such a poison pill by not only canada and mexico but also the u.s. business community at large. >> we talk so much about autos and energy we talk about agriculture and some of the big sectors impacted by nafta and what happens with trade in north america what's the impact for tech >> tech historically if you

asked that ten years ago, tech wouldn't care about policy and politics we were under the radar. i think in the last five, ten years, it is increasingly more important for tech companies to lobby our government for policies, consistent policies. i think that's the most important thing. consistency in predicting behavior of government officials around whether it is autos or fantasy sports or what have you is really important. for me to make investment in a company that can take five or ten years to play out. >> look how long in the visa programs, technology was very involved >> that was a boone for tekin the last tech years. it curtailed, hurt a lot of companies because of immigration policies. >> some additional headlines from the president we expect to hear shortly one that he will call prime minister trudeau soon. the other says we could do a separate deal with canada or make them part of the existing deal with mexico it is clearly hard ball. >> i think the key headline

here, not started with canada. lower third we put up there. this clearly tells me the president wants to say here's the kind of deal we're looking for. now i presume he will call mr. trudeau, say here's what we are working on with mexico, why don't you get on board with this, let's start a discussion on that. that sounds to me -- and i am fine with that i am not fine with let's start a new bilateral negotiations, take six months and blow the whole thing up it sounds like a negotiating tactic, i think you'll get a response quickly from mr. trudeau. >> market seems to be shrugging it off either way. perhaps the hard ball appears to be a game trump is playing by himself, mexico says no bilateral? >> the market is telling you now it believes the course of the negotiations will end with a positive outcome that's what it is telling you now. that this here is a negotiating ta tactic. this is the additional

wrinkle, probably long term the more important wrinkle that we'll work out a deal with china. to what degree at the early stage is today's move a proxy or example of how things might work out with china >> eventually it could be a long time we have to wait and see where that goes, but one of the things i want to point out in terms of stage craft of the state craft we are watching, i flag the possibility the president may get on the phone with the president of mexico. appears according to jeff mason that tweeted a picture of the president dialing the phone he has done that, he dialed the president of mexico to congratulate him on the deal giving all appearances that this is a finalized deal with mexico at a time when he is trying to pressure canada to get on board. the president saying he is open to adding canada to this bilateral deal we'll see what the level of support is on capitol hill for this presumably republicans on the hill will be encouraged by the president making some

negotiating progress, encouraged by the idea of being able to guarantee something for american workers, may want to move quickly on this. we have to wait and see what leaders on the hill say about all of this and digest the specifics of whatever is coming here from the white house. >> eamon, how unexpected is this i know we're sitting here at the stock exchange and surprised to hear nafta name is being dropped, and this is a deal with mexico that could extend to canada was there any signal this could be a possibility today >> today, we never know when these things drop. kayla can tell you, she has been standing on the sidewalk outside the u.s. trade representative's office, staking out officials there. people are aware it has been coming the question is what format would it take, would the president try to get all three nations together and pull that triangle together, would he ditch canada and comments to canada have been unfavorable lately you get the sense that the

president sees a chance to divide and conquer in terms of negotiating strategy putting this together is complicated, and requires more than the stage craft and state craft we have been talking about. >> we'll continue to follow that thank you. for more, let's bring in matt gold, former expect assistant u.s. trade representative for north america. matt, good morning your reaction to the president's comments about trying to make this a bilateral negotiation with mexico, mexico apparently not seeing it that way, open question as to how canada will respond to all of this >> sure. this is not going to be a bilateral deal, it is still nafta, still tri-lateral what's going to happen is canada is going to come back into the talks and continue to work through the issues the united states has about 55 demands in the nafta re-negotiation maybe six of them are big

dmanld demands. it was clear from the beginning trump wouldn't get those this is the sixth. it was clear the president would get part of that one what we're seeing now is part of the process of trump declaring victory in what is essentially a series of failures, but failures that were predictable. everybody knew it would turn out this way. >> how do you expect canada to respond to this tactic by the president? >> the canadians first of all have less -- they have a lot of skin in the game, automotive rules of origin, not as much as mexico does. i think canada will come back into talks, but there are issues the u.s. has with canada that have to be resolved if he wants to close a deal, if he wants to close a deal, he has to let those go of the six major negotiations, there's the sunset provision you were just talking about, that was never going to happen, it is not going to it is how long it takes trump to

get used to that idea. with canada in particular, the united states has two big issues one is removing canadian tariffs on u.s. poultry, eggs, traditional dairy products, one removing chapter 19 from the agreement. trump is not getting either of those. it is a question of how long it takes before trump is prepared to concede that. then a u.s. content require in the automotive rules of origin, trump was never going to get that, he has given up on that, and then buy america, and you don't hear more about that any more now the north american content requirement for rules of origin, 85%. he was never going to get that i predicted from 62 to 67.5 to 70 they're changing the formula how to calculate it. the increase to 75 is more like increase to 70 every part of this predictable still many issues with mexico haven't been resolved, and of course canada has to come in

>> stay with us. joining us, former united states trade representative carla hills that negotiated the original nafta agreement. ambassador hills, from the news we're getting out of d.c., your view of this updated agreement once known as nafta between the u.s. and mexico? >> well, i'm certainly hopeful we get a good agreement, the agreement is 25 years old and needs to be upgraded so i have my fingers crossed that we've done a good job and are going to get to nafta 2.0. >> in terms of negotiations between the u.s. and canada, what do you see as the biggest sticking points, and do you think those negotiations can be hammered on and hammered out quickly? >> again, my hope is that there's so much benefit for all three nations to keep

synchronized supply chains intact we have so many jobs and our economy is so hinged to the north american competitiveness that i hope we keep going. canada will want some things the united states has indicated it cannot give. and i don't know, we're all just guessing canada wants to keep chapter 19 which deals with bilateral disputes over anti-dumping, and counterveiling duties. canada wants that out. and on chapter 11, the investor state dispute settlement, we'll see what happens with that i don't know what happened in the negotiations with mexico i suspect that it's going to be sector directed. it can only be available for

certain sectors, but i don't know that, i haven't read the text. >> none of us have matt, i am curious, our friend on twitter is looking over a statement from christa freeland that says canada's signature is required to what degree do they have leverage here. would they just roll over this to get it done by friday >> well, the united states has very limited leverage. president trump's threats from nafta if he doesn't get what he wants was never a credible threat that's a dissertation of itself. i agree with ambassador hills, it is important to the united states to get rid of chapter 19. that relates to two special kinds of customs duties imposed on canadian or mexican goods on a temporary basis. a right of appeal to not u.s. courts but to bi-national u.s.

or canada panel or u.s., mexico panel. i chaired one of those once. they work fairly well, but the united states has reasons to get rid of that. we don't have leverage to force canada to drop it, and it is an extremely important issue for canada because of lumber and because of aircraft. so we're not going to get that we have reason to get it, but we're not going to president trump needs to come to understand just being obnoxious doesn't create leverage. >> do you not believe this gets rolled into a final agreement by the end of the week? >> i would find it very, very hard to believe. but if it did, it would be because president trump let go of his demand on removing chapter 19 and let go of removing canadian tariffs. it would have to be trump that would suddenly let things go quickly to make it happen the end of the week. it is not that we don't want

these things or have good reason, we just don't have leverage as ambassador hills says, there are small issues that need updating, negotiators worked a year to update other provisions that don't get a lot of media, there are good improvements to the agreement. we hope they'll close this out >> ambassador hills, the question for me also comes to the political backdrop to all of this if, in fact, canada doesn't quickly come to the table and get this wrapped up in a matter of days, there's a chance it runs into the midterms how much do political considerations factor into the way other countries negotiate with us? should canada be expected to think about the fact that congress might look very different 6, 12 months from now if indeed congressional thought is needed to change the terms of the agreement?

>> you're absolutely right there are economic terms that are enormous in negotiating trade agreements, but also political realities. we don't know what a new congress, how it will be composed and how they will feel about trade, but the north american trade relationships are enormously important to our economy. so i would think we would be able to get a good agreement through. you know, we reached for nafta 2.0. if we get a nafta 1.9, a lot of congressmen will say let's go for it because we don't want to have a failure >> let's bring in john harwood to talk about this john, haven't gotten your view we toss around the term landmark campaign promise, but this is one of them, renegotiating nafta. >> that's right. but keep in mind there was

renegotiated nafta on his desk when he took office, trans-pacific partnership. most updates in this deal with mexico reflect what was already done in tpp. there are changes of rules of origin for automobile content and wage requirements. those are new. those could help american workers if auto firms decide to spend money to reconfigure their supply chains to make it happen. we don't know if they will do that i think matt gold made the right point which is that the trump administration's leverage is quite limited. a bilateral deal is unlikely to happen, you would need new fast track authority from congress. in terms of a renegotiated nafta, i think it is quite unlikely there's a deal struck with canada by friday. if there's a deal struck subsequently, then you have a challenge of getting it through congress as things look today, it appears

that would be a democratic congress, democratic house of representatives, and i think that would be very difficult for trump to get that through. his ultimate leverage is pulling out of nafta, but ithink that is limited as well because republicans, democrats, and the business community don't want that to happen, so i think this is less than meets the eye we have to see how canada reacts to it, and whether the trump administration appears to have discarded the one complete stopper for other countries. that's the sunset provision. that's been so muted or watered down it doesn't mean very much, but there are other questions that ambassador hills and matt gold were talking about. but i do think the expectations need to remain realistic about what this means and how quickly there will be action on it

>> matt, in terms of this debate over leverage and who has it between the u.s. and canada, there's a head line that president trump has apparently said he would consider putting tariffs on canadian cars does that increase leverage for the u.s. as negotiations unfold? >> absolutely not. he would increase leverage on cars by imposing duties. that's violation under the general agreement. article 21 when you're abusive, when you impose new tariffs and violate obligations to another country, they don't negotiate, they retaliate. president trump didn't seem to understand that. none of the people around him understood that. that's why we have retaliation from canada, mexico, europe, and from china on the tariffs, national security tariffs on steel and aluminum which are the same thing he also imposed retaliatory tariffs on china those are legal when done the right way, but did them in the

wrong way, they're not legal so we have retaliation to the retaliation. there's no question that illegal duties on canadian autos are going to blow up in his face legal duties we recently imposed, anti-dumping and canadian lumber won't blow up, they were legal. illegal duties on cars, that will blow up in his face. >> appreciate all of the guidance as we await the president's comments in a few moments, we think. in the meantime, the market will give a picture how the news is absorbed top gainers include names like gm and goodyear and kansas city southern, whirlpool, highly leveraged to flow of trait de between the u.s. and mexico. the dollar, peso, along with record highs on the nasdaq and

the dow reclaiming 26 k and holding it we expect to hear from the president in a moment. this tape may run long take a look at we get to the president of the united states on the tape turn comments delivered a few moments ago that we talked to death for the past 40 minutes, best we can. >> we have >> send it back to eamon javers as we await this tape and the president for more details ahead of his comments. >> the thing i am looking to see is the phone call, that stage craft we talked about with the president of mexico. it is exactly what the president of mexico says back to the president of the united states we get a chance to see how enthoe enthusiastic the mexican side is and china as well. we know from wire reports some of what the president said, so much of this conveyed in tone, body language and the rest of

it we'll get a sense of how aggressive the president is toward canada or conciliatory he is toward canada as well, carl >> thank you for that remarkable series of news events regarding trade. let's get to the president >> big day for trade, big day for our country, lot of people never thought would get here because we all negotiate tough we do, so does mexico. this is a tremendous thing this has to do, they used to call it nafta, we're going to call it the united states mexico trade agreement and we'll get rid of the name nafta, has a bad connotation because the united states was hurt badly by nafta for many years now it is a really good deal for both countries and we look very much forward to it and i believe the president is on the phone

enrique? you can hook him up. tell me when this is a big thing. lot of people waiting. hello? do you want to put that on this phone, please? hello? it would be helpful. thank you. >> translator: president trump, how are you. good morning >> thank you, enrique.

congratulations, it is a fantastic thing. we all worked very hard. your brilliant representatives are sitting right in front of me i thought we would congratulate each other before it got out and i know we'll have a formal news conference in the not too distant future >> translator: thank you very much, president trump. i think this is very positive for the united states and mexico in the first reason for the call, mr. president, is first of all to celebrate the understanding we have had between both negotiating teams on nafta

it is interest we have had for quite a few months now to renew it, to modernize it, to update it. and to generally the framework that will boost and potentiate productivity in north america. it is our wish, mr. president, that now canada will also be able to be incorporated in all this and i assume they're going to carry out negotiations on the sensitive bilateral issues

between mexico, rather between canada and the united states and i am grateful, mr. president. i want to say that i greatly recognize and acknowledge your political will and your participation in this. and on this same path, i want to bear my testimony, mr. president, and my acknowledgment to both negotiating teams. especially the team that is headed by mr. robert lighthizer. and also the accompaniment and

support we get from the white house through jared kushner. and i also extend this recognition to the mexican team. we are listening to you. they are close to you now. the foreign minister and secretary of the economy.

and this has of course been a negotiation that has taken months, it has been difficult, conflicts, a very hard negotiation all together but i truly acknowledge now that we have been able to reach an agreement that we are about to make public and this is the result of good understanding and good work. and i of course, i am quite hopeful that now canada will start discussing with the united states the sensitive bilateral issues congratulations. i am very grateful and i am attentive to your comments. >> mr. president, thank you very much it is an honor you have been my friend. it has been a long time since i traveled to mexico where we got

to know each other quite well and actually had a good meeting, some people weren't sure it was a good meeting but i was, i have a lot of good meetings a lot of people aren't sure if they were good or not, but it has been a long time. this is something that's very special for our manufacturers and for our farmers from both countries, for all of the people that work, for jobs. it's also great trade and it makes it a much more fair bill and we are very, very excited about it we worked long and hard, your representatives have been terrific, my representatives have been fantastic, too they've gotten along very well and they worked late into the night for months extremely complex bill and it is something that i think we'll be talking about for many years to come. just good for both countries as far as canada is concerned, we haven't started with canada yet, we wanted to do mexico and see if that was possible to do

and it wasn't from any standpoint something that most people thought was even doable when we started if you look at it you remember at the beginning, many people thought this was something that just couldn't happen because of all of the different factions, all of the different sides and the complexity and we made it much simpler, much better, much better for both countries canada will start negotiations shortly. i'll be calling the prime minister very soon and we'll start negotiation. and if they'd like to negotiate fairly, we'll do that. you know, they have tariffs of almost 300% on some of our dairy products and we can't have that. we're not going to stand for that i think with canada frankly the easiest thing we can do is tariff their cars coming in. it is a tremendous amount of money and a simple negotiation, could end in one day we take in a lot of money the following day. but i think we'll give them a chance to probably have a

separate deal. we can have a separate deal or we can put it into this deal i like to call this deal the united states mexico trade agreement, an elegant name nafta has a lot of bad connotations for the united states, it was a rip-off, a deal that was a horrible deal for our country. i think it has a lot of bad connotations to a lot of people, so we will probably you and i will agree to the name we will see whether or not we decide to put up canada or just do a separate deal with canada, if they want to make the deal, the simplest deal is more or less already made. it would be very easy to do and then execute but i will tell you that working with you has been a pleasure speaking with and working with president-elect lopez oberdoor has been a special time. you both came together for your country. you work together. i think that's important for the media to know, we have a small

amount of media in our presence, like everybody, and the media should know that the president and the president-elect worked closely together because the president felt it was important that the president-elect liked what he was seeing our teams worked together. our teams were really well unified and your team was well unified. i was very impressed with the fact that the two presidents came together and worked out something mutually agreeable so it is an incredible deal for both parties and incredible deal for the workers and citizens of both countries our farmers are going to be so happy. my farmers have stuck with me. i said we were going to do this. mexico promised to immediately start purchasing as much farm product as they can. they're going to work on that very hard. as you know, we're working

unrelated to this, we're working very much with other countries china is one, they want to talk. just not the right time to talk now to be honest with china, too one sided for too many i would like to congratulate you and the mexican people. >> i auns this because of the pointover understanding we are reaching on this field

and i really hope and i wish that the part with canada will be materializing in a very complete fashion we can have an agreement the way we proposed it from initiation today i celebrate the united states and mexico. we are reaching a final point of understanding. and i hope we can materialize the formalization

>> it has to do with a committed participation of the administration and the president elect of mexico. as you know, we are now going through a period of transition it has bchb possible to create a highly unified front between the negotiating team of this administration the people appointed by the president elect of mexico.

to participate in this agreement, in this understanding and to reach the point we are now reaching president elect has been aware of everything that has been happening and i have also had the opportunity of talking to him directly and personally on the offers being made. you have also had direct conversations with president elect. things we have to do and i hope we have the space do it would be

to toast a good toast with tequila, of course, to celebrate this understanding >> i think that's exactly right. you know the good relationship i have always established with the president elect, i was tell you, he was terrific in every way he loves your country like you love your country. you want to do the right thing we are really doing the right thing for all of us. so i really enjoyed that please send him my regards and i will speak to him very shortly it is great you were able to do it together. i think a mutual agreement between your two administrations was a fantastic thing. i suggest that had early on. i think it was immediately embraced and a really fantastic thing you were able to do it and with great spirit.

it was great coordination and spirit it think it was really just great. this is a very comprehensive agreement. we will see you soon i think we'll have a very formal ceremony it is maybe the largest trade deal ever made it is really something very special that two countries were able to come together and get it done i want to thank all of my people you have been really great the way you have worked so long. i know you have been going up until 3:00, 4:00 in the morning and then getting in at 8:00. on behalf of the united states i want to say mexico is very proud

of you i'll see you soon. i'll talk to you soon. congratulations. job well done. >> thank you we'll be waiting for canada to be integrated into this process. i send you an affectionate hug and my regards >> a hug from you would be very nice thank you. so long. thanks good-bye okay so we have made the deal with canada it is a very -- sorry, we made the deal with mexico we are starting negotiations

with canada pretty much immediately. i can't tell you where those negotiations are going mexico is a large trading partner. we have concluded our deal and it's being finalized bob, when did you say it will be signed formally signed? >> it will likely be processed the end of november. a 90 day layover period. we expect to submit our littett on friday. >> so that starts the press. >> 90 days later it will be signed >> we have an agreement where both with can the and mexico i will terminate the existing deal when that happens i can't quite tell you it depends what the timetable is but i'll be terminating the existing deal and going into this deal. we'll start negotiating with canada relatively soon

they want to negotiate very badly. one way or the other we have a deal with canada it will be a tariff or negotiated deal. frankly a tariff on cars is a much easier way to go. perhaps the other would be much better for canada. we are looking to help our neighbors too. if we can help our neighbors that's a good thing, not a bad thing. so we are going to start that fle gauchuatio-- negotiation emy want to thank everybody. i want to thank you. what a great job you have all done it has been a long one but a lot of people thought it was not a doable transaction it will be great for our people and again, i want to thank you we'll see you at the signing and many times before that i'm sure. so congratulations to the people of mexico. great job. thank you very much everybody.

>> that is the president there on speakerphone announcing the intention to drop the nafta name without canada which is part of nafta but challenging canada to join in, raising the threat of tariffs on their cars if they don't come to the table and join what is sort of a two-thirds agreement. >> he did mention he would be

speaking probably later today and getting those conversations going. zbli want to get your opinion. what is involved and what is the step forward in terms of how law make rs approach this? it would adopt this version of the upgraded