door of nafta. not a lot of people know where that text is, so just heads up, that's one to watch. on food safety, there are a bunch of issues having to do both with what standard of safety is required and labeling, an issue to watch is equivalence. this is one of those stories where you can tell a story very vividly about how trade is more than tariffs. we suspect that there will be equivalent, which is that imports from mexico and canada don't meet our investors, but that get determined to be equivalently protected, to come in. that currently is the rule for meet under nafta. it could be for everything, and then regulatory coherence is a whole chapter the industry guys are desperate to get. it was in the europe agreement that obama was doing, and it basically lays out what procedures you have to use. you can go back to this. it explains what this is. but again, it's a really big hot issue, because the groups from the democrats in congress, they look at a half a billion dollars paid out to corporat

nafta. it could be for everything so regulatory coherence is as a whole chapter that industry guys are afraid to get, it was in the ttip and it basically lays out what procedures youhave to use . slide just explains what investors date is again, it's a really big hot issue because from the environmental and consumer groups, they look at half $1 billion paid to corporations and attacks on timber policies, toxic bands and making all landlord, tribunals or corporations alone and attackour treasury . from the conservative side they say crazy subsidy to promote outsourcing. one outsource that makes sense, go by risk insurance. have a on jump ball there is a rare list there where you have basically the justice roberts and elizabeth warren both thinking anything legal is a bad idea, just in here are some of the cases and in the packet of materials and explains where you can get more of this information so quickly why this, such? it's because of the outcomes under the original nafta so we saw the vo

nafta, nafta was much more expensive. this gets to a very quick detour of how we got to this situation. if you look at what we've had for 50 years after world war ii, the bretton woods system, the gap was cutting tariffs, limits on stock, for the moment when i can look at the other two. if you couldn't drop in on your foot it wasn't trade then, you get the corporate globalization nafta starts this. you have the new agreements, in summation, it service sector regulation, food safety, product standards intellectual property, investment and then also government procurement. stuff that had not been in a trade agreement. you have the original agreements that were about photos and tariffs, this is the text that is 900 pages. when you start having a political fight about that it becomes controversial. you are writing policy that is normally done in state legislatures. now, it is being done with trade officials, not your food safety, it's behind the border stuff and is being done in trade negotiations since they have classified t

he makes every nafta country make it a criminal penalty so you revive this to the factor of nafta. that chapter is, i love people know about texas i just had to come this one to one to watch. on food safety to our budget issues i may do both with what standards standard of safety is required and labeling an issue to watch is equivalence picked this up on the stories we can tell a story very vividly about how trait is more than tariffs. we suspect it will be equivalence which is that imports from mexico and canada don't meet our standards but get determined to be protected coming. it could be for everything so all the pesticide issues and then regular coherence is a a whole chapter that the industry guys are desperate to get. it was in the ttip, the europe agreement that obama was doing and it basically lays out what procedures you have to use. this slide you can go back to. it just explained what investor state is but again it's a really big hot issue because from the environmental and consumer groups in the democrats in congress to look at half a billion dollars paid out to corpor

trump follows through and withdraws from nafta, which is legal authority to do because the nafta implement legislation has a living will clause that most people are not aware of that lets the president basically take action, and automatically terminate its first five provisions of the authorization by congress goes way without another act of congress. were he to do that come just said that because you'll be tempted by the story that will pursue to write something about jets will zoom back into place. since nafta was negotiated the wto tariff cuts have gone into effect. so almost all of our manufacturing is duty-free with a very few exceptions like trucks have real tariff cutting interviews. 25%. mostly you are really small cars have to .5%. agriculture is the nafta story if you withdraws. so just stick opinion that if you have to cover it, reporting for an agricultural state, agriculture all of it, no one will still be duty-free. big myth. mexico is duty-free for the world on corporate happen at the wto a decade ago but the and im, chicken, gary, of the things that are covering a nafta bel

and imports under nafta. that is just one program. hard to qualify for a program. the incentives to outsource jobs to nafta aredevice. oris not an act of god natural composition, it is a scale, the companies got to write nafta and put in the things good for them without having to think about what would be good for working people. the trade deficit does matter. it matters because trade affects the composition of jobs available in the economy. it does not affect the total number as much as other things but it affects the composition and wages. 70%lar education levels -- of americans who do not have college degrees, even if your job is not outsourced on that deficit, the downward pressure on wages -- the people who get outsourced have been competing for the jobs that cannot be outsourced -- in areas with a number of jobs are increasing, service sector areas that cannot be outsourced, wages are flat as a matter of the people competing out with a growing number because the higher wage jobs are outsourced are bring

nafta is a sign. on the 30th day after the notice, they must public the website so that becomes the first melt for the press, the public, congress on thethey are committees to see what the hell the deal is. a plan for reading glasses and time and make sure to got the context lined up find out what the hell says. the itc is required to do assessment. next hook. they have up to 105 days after the notice and it don't that long.lways take but they will issue a report that jokes what it is supposed to do. that to say if they meet the deadline there wouldn't vote until 2018 and don't have time rest of the process to you have to cover this or colleagues scheduled to beer it the signing would the big be sure now the text will come out and the itc study that this is year's news that be early in 2019. tho bill gets where it bin the white house and the only renlation under fast track is to back when it was the power to write legislation and it doesn't thehrough markup so once agreement actually is signed and in

or the old nafta. they say we would like the old nafta. we don't want the new nafta. i think the real choice is something like a new nafta or no nafta. the president keeps saying he's going to give notice and get the hell out. canada says, i think we won't join and see what happens. host: without being in the middle of a transition -- what about being in the middle of a transition in government in mexico? >> they have an election with a very long lame-duck period. the swearing in of the new president is december 1. the election was in july. during that time the president has full powers. it's not like japan where there's a caretaker government. thursday authority. for the current president, pena nieto. to sign nafta. that's why the deadline gets so hot. you have to have this notice in the u.s. system in order for the day beyond the inauguration of the new president, the old president can still sign the agreement. the new president has said i will be a this table, i'm going to send my people. continue and a representative of the old government is sitting there at a min

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

hillary originally supported nafta before she didn't support nafta so i think they were aiming at her donald trump as you know during the campaign made after the centerpiece along with china but nafta was the main issue and i think that's because he could pin it on the clintons and having said that i think bernie's objections that there are groups on the left bernie sanders included in some radical left wing groups that radical in my view that are against nafta for different reasons more environmental issues and getting rid of arbitration between labor and corporations and government governmental arbitration they want different vehicles to decide disputes so they have their own agenda it's not necessarily donald trump's agenda but i think they all agree that too many jobs went south overall and too many workers lost their jobs and donald trump's main thing also was we were taking it more products from mexico than ever before and we were getting shortchanged so again another promise kept. apparently or at least on the way to being kept by the president. i agree that i think you have a

, the current nafta, call it nafta 1.0.t's happening, we are building more cars here in america today than we did before nafta. we are exporting more cars today than we did before nafta. we are employing more people. so this is, really, nafta has been a great engine. what i'm concerned about is whether the nafta 2.0 that appears to be down to the short strokes, will really produce the same competitive benefits for the industry going forward. that's the real question. liz: what needs to be in it? let me push you here. >> yeah, so you know, these rules, you heard chad call them rules of origin, these are the rules you need to comply with to get duty-free benefits of nafta. they are incredibly complex and challenging. much, much more so than in the current nafta. what we have to make sure is that those complex sets of rules get the balance right between allowing for a competitive nafta to support strong supply chains while at the same time supporting american investment. that balance is really not going to be clear to us until

they used to call it nafta.l it the to united states-mexico trade agreement and we will get rid of the name nafta as a bad connotation. now it is a good deal for both countries and we look forward to it. i believe the president is on the phone. enrique? you can hook them up. are we in? a lot of people waiting. hello? do you want to put that on this phone, please? hello? it would be helpful. thank you. president trump, how are you? good morning. pres. trump: we have all worked very hard. your representatives are in front of me and i thought we would congratulate each other before it got out. we will have a formal news conference in the not-too-distant future. >> thank you very much, president trump. this is something very positive for the united states and mexico . the reason for this call is to celebrate the understanding we have had between negotiating teams and nafta. the interest we have had for to renewew months now it, to modernize it, to updated -- update it. framework that would improve productivity in no

we will get rid of the name nafta.notation because the united states was hurt that they buy it for many years. it's a really good deal for both countries. mark: mark: the president made the comments after he calls an understanding with mexico the could lead to an overhaul of the trade pact. the president called it a job killing disaster. congressional democrats will not say whether they think that president trump has committed impeachable offenses, but they are promising vigorous investigations if the party regains control of the house in november. republicans have seized on the threat of impure -- impeachment to fuel turnout in the midterms. italy is threatening to veto the european union budget over migration policy. the italian government is unhappy to

nafta.eal does the u.s.-mexico leave canada and china, and other trade deals? trump is weighing in on expectations. let's have a quick look at some of the currencies. the canadian dollar is fairly in limbo. the foreign minister of canada is on her way to washington, talking about a modernize nafta. -- modernized nafta. we have the mexican peso as well. it is retreating this morning after initially rallying on this u.s.-mexico deal. here?does this had from -- head from here? manus: the mexican peso rallied 4.4% this year. one thing is for sure -- the markets have decided to short risk protection, the vix, u.s. treasuries, and dollar. we are ratcheting lower in terms of the speculative. there is a larger short position on these trifectas of risk indicators in the market. is this the beginning of dominoes set to cascade after the midterms? you can't read that much across from mexico into china, but could it be after the midterms, trump ratchets up his ability to do deals? at the moment, the mar

i want to start with nafta. you give us a sense on a nafta deal, assuming this gets done, how this changes the economic outlook that we are dealing with in the united states? a nafta deal would clearly be something good for the economy and good for sentiment and the sentiment of business decisions, but it is a very good thing. however, you know, maybe mexico or canada or the bigger targets of the u.s. trade policy. china is a bigger trade partner, so we will see if there will be a similar deal. they willl sense is work harder to get the deal. today is good news. romaine: much attention to the labor market, we run the risk of ending the expansion prematurely, and that is a risk not was taking at this stage. vonnie: what about other risks, roberto? turkey is back after a holiday and the lira is trading at 6.1. it is weaker by 2.3%. could something like turkey derail the fed's plan to another many crisis? roberto: no, i do not think so. and not if it is just turkey. if you look at the impact that turkey has had so

we will get rid of the name nafta. has a bad connotation because the united states was hurt that they buy it for many years. it's a really good deal for both countries. mark: mark: the president made the comments after he calls an understanding with mexico the could lead to an overhaul of the trade pact. the president called it a job killing disaster. congressional democrats will not say whether they think that president trump has committed impeachable offenses, but they are promising vigorous investigations if the party regains control of the house in november. republicans have seized on the threat of impure -- impeachment to fuel turnout in the midterms. italy is threatening to veto the european union budget over migration policy. the italian government is unhappy to use members fail to follow through on a deal reached the floodr handling of migrants. the italian deputy prime minister says the country will cut whatever budget measures are not convenient. north korea is accusing the u.s. of staging military drills for

and creating nafta 1.00.01. trump hdid get some meaningful progress there. presenting it as if the united states is pulling out of nafta, going alone with mexico has two purposes. one, he's trying to scare the canadians so they pressure prime minister trudeau to give trump two concessions when canada comes back to the table which trump is not going to get. and the other is to remind his base that when he promised he'd really shake things up, he's still prepared to do that as we get closer to the midterms. >> so the language he used was interesting to his base, but in fact if you look at the concessions that he did get, they're not terrible. might not be a bad renegotiation. >> no, there are a lot of concessions -- actually not concessions, but a lot of changes that were beneficial to all three countries. it took them most of the year to negotiate things relating to telecommunications, things relating to how you inspect meat and animal products and grain and plant products coming into your country. lots of change

then there are elements like dairy, nafta has done an outstanding job, the original nafta, on market access. 99% of american goods enter canada duty-free. gary was an area that was left dairy was an area that was left out because it was very sensitive to canada. we have some of those as well. are examples of some things the business community would like to see addressed in nafta. the administration has pursued a number of proposals that do not popularity in the business community. i will mention a couple of them. if you walk the halls of congress, members of that we want our trade agreements to be strong and enforceable. how do you you enforce a trade agreement? in nafta, chapter 20 create a form of a dispute settlement system, panels are created to adjudicate a trade dispute if we think canada or mexico is not complying with the terms of the agreement or the other way around. in the event the panel rules against one party, the others can suspend benefits. they could raise tariffs and response, as a legal retaliation. administration has proposed to do away with that and make the ruli

nafta was bigger and it would be rational that nafta is bigger because it involved canada and the united nafta had 489.5 million people covered by this. top largest trade deal ever incidentally doesn't involve the united states. it goes to the european union japanese economic partnership agreement that accounts for one-third of the world's economy. it's a brand new trade deal that the u.s. is not involved in. here's what is included in this deal between the u.s. and mexico. tariffs on agricultural products traded between the two countries will remain at zero, which is where they were under the original nafta agreement. we now have tariffs on products that are because of this trade dispute that we're in with mexico. the agreement includes new requirements on car parts and production. under this deal, 75% of a car's parts must be made in the united states and mexico. that's up from top original nafta requirement of 62.5%. now, add to that that 40% to 45% of the parts of the cars must be made by workers earning at least $16 an hour. not an average of $16 an hour, but they have to have a min

that doesn't mean nafta has been saved. we still have to get canada in.nd then it has to go through parliament. , the congress, and the mexican congress. that: we are now hearing one of the sticking points at the moment is that, largely, beens on auto rules have agreed on by the u.s. is still pushing for those cars that don't meet criteria to meet a tax, up to 25% tariffs under the section 232 rule. what are your thoughts on that? >> these rules of origin, i think we are getting pretty close. the when you add something like that, the unintended consequence will be that it will be very difficult to make cars in the u.s. and you won't be able to export from the u.s. we export over a million cars a year. i don't see how we can export if we are using all of our higher costs. presidentnow see trump using section 232 and talks. there are talks in the senate confirming what section 232 would be applied on in the defense department. what are your views on transferring that authority? >> you mean from commerce -- shery: to the department of defense? defense is a v

interestingly, we have been talking about president trump talking to nafta -- about nafta.about the $200 billion worth of chinese tariffs on imports. confirmed in an interview with trump that trump smiled and said it is not totally wrong. washington is here to discuss. the impact has been digested by and put some concerns into the market and we have seen and put some concerns into the market and we have seen the yuan have an effect. how much of a tangible effect will it have imposing these tariffs? i think the devil here will be in the details. all of the tariffs will be set. are they going to be 10%, 25%? we will need to see the numbers before we can guesstimate the size of the impact on the economy. our initial calculation, based on the assumption of an additional 10% in tariffs on the $200 billion suggested cost to chinese gdp, potentially around 1.5%. at the same time, in the context of an economy still growing at 6.57%, it will not be great for china. joe: we've seen the chinese again -- yuan stabilize after several week months. what might the currency managers do from

was hurt by nafta. >> nafta has cost hundreds of thousands of u.s. jobs. specifically auto jobs. it sets higher labor standards for auto workers and a higher percentage of parts made in the u.s. or mexico. which the u.s. trade rep says will help both countries. >> we created a situation with more u.s. jobs, but also will be more mexican jobs because we will squeeze out people not in the region. it is a big win for manufacturing. >> without naming them, squeezing out china is the goal. it is time for canada to come to the table. president trump says it is time to come to the table. in response, canada called the progress necessary to rejoin talks. the canadian foreign minister likes the issue. this is similar to the trump summit with kim jong-un. both came with fanfare and bluster. >>> and paul manafort, the former campaign chairman of president trump's seeking a deal. the wall street journal reports as jurors were deliberating bank and fraud charges, manafort's defense team was trying to hammer out agreement to avoid a second trial. the talks stalled after robert mueller raised i

we are very much dependent on nafta. and with the ongoing negotiations the autos are front and center in that debate and i will cover that in a little bit. we want to see nafta remain most importantly and for a while it's a little uncertain. ran throughout his campaign. we are very much engaged in that. this just shows the picture of facilities in north america 15 in the u.s. if we see the trend been pretty consistent. the financial picture that our industry is going through. we are very much a cyclical industry. we are coming off of seven years of record-breaking sales and we are now entering a couple years now we have seen either flat sales for now declining sales. it's a fairly soft market right now for the auto industry not just the way our industry operates. we been able to maintain at least the total number of sales hovering around 16 unions. i note that we are in the softening environment and we are seen interest rates start to rise. it is a little bit the future for our industry is a little crowded in terms of wh

that would replace nafta. the president also speaking by phone with german chancellor angela merkel the white house says two with leaders strongly supported talks washington and brussels to remove barriers to deeper trading relationship. and president trump also spoke with with canadian prime minister justin trudeau as they too work on a trade deal. >> now attention shifts with negotiations to canada. white house economic advisor larry kudlow warning u.s. could flat on autos if a trade agreement isn't reached. >> canada cools to the table. come to the table let's make a great deal like we just did with mexico. if not usa may have to take actions. >> we're going to get more on new agreement with mexico from our own edward lawrence. >> well good cheryl and lauren a historic trade announcement between mexico and the united states. that would revise nafta so to speak, the president says that he's going to call it the united states/mexico trade agreement. this agreement has a lot of bilateral components that would

nafta modernization. you know, behalf that is, it's an incredibly important trade agreement for the american economy today. there's, we the estimate there are 14 million american jobs that depend on trade with canada and mexico. it's not just another trade agreement. canada and mexico buy more u.s.-made manufactured goods than the next ten largest export markets on our list. it's that important. and for american agriculture, even more so. american farmers and ranchers have seen their exports quadruple under nafta. they're extremely reliant on those two markets whether you're talking about cheese or pork or tree nuts. these are vital markets. now, nafta's a 25-year-old trade agreement, and i think all concerned have identified areas where it makes sense to modernize it. i talked briefly before about the digital economy and e-commerce. well, that didn't exist when nafta was negotiated. there's provisions we could include here that will facilitate e-commerce. there are forms of intellectual property that did

tummy, is nafta as dead as the parent -- tell me, is nafta dead? reporter: it is certainly that preliminary deal, because it's not finalized yet, that president trump was talking not nowth mexico, it is stuck. it doesn't even involve canada at this point. it would be a different deal. the real question is, does canada get on board? if canada gets on board, that certainly changes it. if canada does not get on board, it is a bilateral agreement, and that would have to go back to congress, the u.s. congress and presumably in mexico as well. that will be a bit tricky. it is a midterm election year. the congressmen and senators want to the home to campaign in october. that does not give them enough time. rishaad: but they have been already? reporter: they are, but they will glee in washington in september. they don't want to be in washington terribly longer than that. it depends. the other issue is whether this can stick. agreement.liminary president trump has made it clear he will walk away from things he doesn't like. rishaad: just talk about the term

president trump can say that nafta is dead. nafta is not dead until there is a superceding trade authority. to have that you need not only the approval of the united states congress, you need the approval of the legislatures in canada. that's up from 62%. there need to be a certain number of employees that make $16 an hour. that doesn't though factor into all of the labor and health care and retirement costs that a lot of u.s. companies end up paying. so there are some changes around the edges, but until canada agrees and until you have an agreement from the united states congress, this is really an opening bid and isn't really a final agreement. you heard pena nieto he called it an understanding, not an agreement. >> i think the point, ali, is to underscore this is not the president renegotiating nafta. this is a preliminary agreement that they will take to the canadians? >> yeah, it's not terrible. the canadians are back at the table. donald trump doesn't like to negotiate with multiple parties at the same time. he went to me

we'll get rid of the name nafta. it has a bad connotation because he had as it was hurt very badly by nafta for many years. >> . >> outgoing mexico president was enthusiastic as the deal is president trump, he even said he would like to give president trump a big hug. he acknowledged getting to an agreement was tough. >> very grateful mr. president . a negotiation that has taken months. it is been difficult, complex. ed has been a hard negotiation altogether. >> the biggest change of the trade relationship as rules of origin for cars, 75% of components used to build cars must be made in either mexico or the u.s. 40 to 45% of auto content must be made by workers earning at least $16 an hour. the biggest loser in this deal, china. which is been skirting existing nafta rules by funneling cheap car parts through mexico. the deal also increases trade in agricultural goods, leaving tariffs at zero. it puts much more pressure on canada to make a deal. canada was involved in three way talks with mexico in the u.s. before pre

the position that was taken by the united states was that we had to have nafta, minus instead of naftalus. that means we will have to end up with something that is less good than we had previously. least have done away with the answer to the we are facing today and could at least ensure that in the broadest terms, the nafta under whatever name still exists, we will have to see what that packages. jon: certainly, there is a possibility there could be some ability for both sides to agree to keep talking and send that to congress so that they can continue talking over the next month. but, are your stakeholders ready for the consequences of what happens if at the end of the day, whether it is today over the -- when the next month, both sides cannot reach an agreement? some of the things we have heard, the president talking about the threat of auto tariffs. perrin: nobody is ready for the consequences of that. everybody hopes he can be avoided. the simple fact is nafta has been good for all three countries. orng anything to undermine to damage nafta or to throw it out entirely would have ve

our top stories: a new nafta? president trump says he's reached agreement with mexico over a new trade deal. it has been a long time, and this is something that is very special for our manufacturers and for ourfarmers from both countries. myanmar‘s government rejects claims of "genocidal intent" made against its top generals in a un—backed report. after a muder in the germany city of chemnitz, thousands of far—right demonstrators clash with anti—fascist protesters in a second evening of violence. and the threat to the american military base on diego garcia. mauritius wants the island back and it's winning international support. the us and mexico have agreed to overhaul the north american free trade agreement, known as nafta. president trump was quick to hail the development as an important step towards an "incredible" deal that was "much more fair". but the final shape of the agreement is far from clear. canada, the third country in the treaty has not been part of the negotiations with mexico. us and american offi

-- nafta leave canada in the cold? ♪ >> it is good happy with us.olice and the germans the of chemnitz say several people have been injured as protesters face off with counterdemonstrators/ some protesters have been wearing masks and carrying stones, according to police. tonight's unrest follows barbre protests which broke out yesterday -- far right protests yesterday after a german citizen was fatally stabbed. two suspects, a syrian and an iraqi have been arrested in connection with the killing. our correspondent joins me tonight from chemnitz where there are protests. good evening. we know that the police have said there have been some injuries. what have you been seeing? any sense that the protests are coming down? >> good evening. please tweeted that there were a number of injuries. we did see protesters throwing fireworks, stones. that is a short time ago. there were hundreds of barbre protesters in the square behind me. across the street on the side of the road were counterdemonstrators. they were hurling slogans and insults at one another. as

>> it is not the future way for nafta. i think it is clear to get canada back to negotiations and trying to negotiate with canada. if that does not work, there is all these barriers doing a spirit thing with mexico. it is not clear that mexico is a willing to do a lbilateral deal with the united states. when the president was trying to talk today of the idea that we may have a separate agreement with mexico, you have the mexican president continuing to call it nafta. it is the president's view that he can negotiate a better deal in these one-on-one negotiations that i am sure we how old like to be able to break this into a bilateral agreement. we are seeing other countries around the worldcoming into these bilateral agreements and reco re-constituting of all this. >> i don't remember seeing an oval office meeting like this. we had a leader of another country on the speakerphone and since he is doing this sort of interview if you will. the event itself was not on the president's schedule. the whole thing seems to be fairly

it is not one of the nafta negotiating chapters.at, we very much are opposed to these tariffs. they are unjustified and they are illegal. the notion that somehow canadian steel or aluminum could pose a national security threat to the united states is frankly absurd. we are very clear about that. >> that is all the time we have. thank you everyone. thank you very much. i imagine i will see quite a you five us next wednesday. kristna: there you have it, minister of foreign affairs in d.c., chrystia freeland. she used to be a journalist. i was pointing out, sticking to the talking points, not diverging away. we wanted to hear more about chapter 19. if you have a dispute between canada and united states that would be the chapter in there. she said the auto sector was at the heart of the negotiations hence, to highlight, it was unjustified and illegal with the united states to go forward with any additional tariffs due to safety issues. the president threatened this against canada going forward. she hasn't really veered off path at all w

nafta. the president made the announcement just before noon in the oval office. president trump: hello, everybody. it's a big day for trade, a big day for a country. we negotiate tough, so it is mexico and this is a tremendous thing. they used to collect nafta, we're going to call it the united states mexico trade agreement and we will get with the name nafta, that has a bad connotation because the united states was hurt very badly by nafta. for many years. but now it's a really good deal for both countries. and we look very much forward to it. and i believe the president is on the phone. henrique? you can hook them up. it's a big thing, a lot of people are waiting. >> hello. president trump: you want to put that on this phone? hello? that would be helpful. >> president trump. president trump, how are you, good morning? president trump: congratulations, we've all --ked very hard and you are you're brilliant representatives are sitting right in front of me and i thought we would congratulate

nafta modernization. nafta is an incredibly important trade agreement for the american economy today. we estimate their 14 million american jobs that depend on trade from canada and mexico. it is not just another trade agreement. canada and mexico by more us-made manufactured goods than the next 10 largest export markets on the list. it is that important. and for american agriculture, even more so, american farmers and ranchers have seen the exports quadruple under nafta, they are extremely reliance on those two markets. whether you're talking about cheese or pork tree nuts, these are vital markets. all concerned i think they've identified areas where it makes sense to modernize it. i talked briefly about the digital economy and e-commerce while that did not exist when nafta was negotiated. provisions we can include here that will facilitate e-commerce. there are forms of intellectual property that did not exist when the nafta was negotiated. think of biologics. biologics are actually leaving agents that

nafta has a bad connotation because the united states was hurt very badly by nafta. now, it's a good deal for both countries. yvonne: that clears the way for canada to rejoin the talks. flying to washington. let's look at the implications of all this. eric martin, who covers mexico and latin america for bloomberg news joins us right now. what does this deal mean for mexico? this is something bloomberg exclusively reported on sunday morning that they were poised to reach a deal as soon as today. they have come to an agreement on a lot of things in the bilateral relationship. the majority of what mexico sends to the u.s. our automobiles, and they have come up with new rules. they should strengthen reasonable content for vehicles made in mexico and sent to the u.s. they haveow that resolved issues on agriculture, which there was a concern about whether there would be limits on mexican agriculture, produce coming to the u.s.. also things like the u.s. demand for a potential automatic termination of the deal which has been taken off the table. what we will have is a revie

and mexico make progress on a nafta replacement. anotherets on uber, half $1 billion investment as it looks to catch up in the autonomous vehicles market. prime minister theresa may says a no deal brexit can still be a success. the nasdaq above 8004 the first time ever. welcome to "surveillance." i'm nejra cehic. the s&p 500 just short of 29 hundred. the equity rally is continuing in europe. we saw it in asia, as well. the stoxx 600 up some 200 -- .2%. -- .02%. trade dominating traders minds today. pesow the mexican strengthened yesterday. we are seeing weakness in this session. still some questions over those talks and what we get with replacement of nafta. also, the yuan of interest today because we saw a stronger fixing from the pboc. we are seeing more yuan weakness in the offshore, off by 1/10 of a percent. overall, a bit of dollar strengthen the session after the weakness yesterday. on bloomberg, we will bring the afteriew with the ceo 4:00 p.m. u.k. time but for now, the first word news with taylor riggs in new york. still ma

and mexico struck a renegotiated nafta version on their own. they worked through some of the difficulties especially around autos and then brought the canadians in to join the deal. those talks appeared to have broken down. we don't know if it's a no deal, no more talking, deal talks continue and it all comes mida very weird leak from an off-the-record comment president trump made to bloomberg news that came out in the toronto star today that were seen as insulting remarks to canada but he's not willing to compromise, and he didn't want that out there because he didn't want to insult canada. >> the markets remain positive from the start of the week weak to date the s&p is up about 0.6% today and net net for the week as a whole, markets are higher. let's discuss what this all means for energy markets john, great to have you with us. i mean clearly trade has impacted energy prices a bit, particularly things like china talking lng tariffs and the like but what about this week's developments does that impact all price snz. >> not a little bit, wilf

what does that mean for the future of nafta? seen the president being very adamant on relaxing canada's tariffs. it is interesting how this comes up to be such a big issue so that everyone has inspected here. 1% of theess than trade with canada. the u.s. has a surplus of dairy with canada. it is then pointed out that there are penalties of 270%, no one actually pays those because we have quotas to get us into canada. the canadians do not so much dairy at all to the u.s.. the president has made this an issue and the prime minister has domestic issues of keeping supply management in place. to give room here additional axes to the united states without disbanding the whole nine. it is so small relative to the overall trade, i would hate to see this be the issue that breaks down the agreement. the prime minister already indicated some give in dealing with the eu in trade agreements. is it possible to increase those quotas? >> yes i think so. they did the same in tpp as well. they have shown some ability to give additional access to

nothing is as bad as nafta. >> well, yesterday president trump got rid of nafta. or did he?rminating the existing deal and going into this deal. i like to call this deal the united states/mexico trade agreement. this is one of the largest trade deals ever made. maybe the largest trade deal ever made. and it's really special very special. the two countries were able to come together and get it done. >> rlet's be clear, none of wha you just heard from the president is actually happening. president trump hasn't terminated nafta or even pulled us out of it. that would require at the very least six months' notice and more than likely permission from congress. the new deal the president is talking about is, according to his own trade representative, a preliminary agreement in principle. to just update nafta. rebranding does not change reality. in other words, there is no new deal, just a new name, maybe. if canada and mexico agreed to it, which hasn't happened yet. look, there's always room for improvement. if president trump's tough talk can improve the deal for american workers,

>> the nafta thing? stuart: yes. >> the anti-nafta thing? very skeptical when he started talking about tariffs. i'm a free-trader, and i thought it was going to set us back. but he's pressuring our allies and our adversaries to rower their trade barriers. if that's the goal, i'm with it, and this is a victory. you can tell what the stock market is doing, up 200 points. stuart: one of the most amazing things that we're hearing is that mr. trump has made sure that the wages of car workers in northern mexico go up significantly. what is it, 5 or $16 -- elizabeth: yeah. stuart: you pay them $16 an hour, you don't pay atariff on the car they make there -- >> that's right. overall, the goal is to lower barriers, and apparently that's what the president has done. stuart: okay. you approve of all of this? >> i do. stuart: free-trader? you just got real. >> that's right. i was board when he was talking about reopening nafta because that has benefited people in canada, mexico and here. stuart: larry, we want to segway here. joining us now is paul conw

it is a reworked nafta. president trump said i will be speaking with prime minister trudeau to incorporate canada. we're taking a look at tesla. tesla has been beaten down after the august 7 elon musk said he secured funding to go private. the stock was at $179 -- $379 that day. it is 316 now. as of friday he abandoned the plan to take it private. so we're seeing a sell off today. left analysts and investors questioning a lot about the company, about elon musk, who will take the helm. some people are still very positive on tesla. such as baird. they have 411 price target. jpmorgan on the other hand has 195-dollar target. they are focused on cars but batterier and focused in china and may look at chinese-backed banks for that. back to you. neil: nicole, before i get to the next guest, i want to show you the scene in front of the white house. a hullabaloo with the flag over the white house at full staff. flags remain half-staff up to five days, sometimes longer. specifically up for a member of congress, two da

we'll get rid of the name nafta.n because the united states was hurt very badly by nafta. it wasn't from any standpoint that something most people thought was even doable when we started if with you look at it from the beginning many people thought this was something that couldn't happen because of all the difficult factions, all of the difficult sides and the complexity. and we made it much simpler, much better, much better for both countries. liz: markets closing in record territory again as the u.s. and mexico

badly by nafta. for many years. but now it's 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 hug him up. tell me when. him up. tell me when. it's a big thing, a lot of people are waiting. >> hello. president trump: you want to put that on this phone? hello? that would be helpful. >> president trump. president trump, how are you, good morning? president trump: thank you, and recap. nrique. congratulations, we've all worked very hard and you are -- your brilliant representatives are sitting right in front of me and i thought we would congratulate each other before it got out and i know we will have a formal news conference in the not-too-distant future. >> thank you, very much, president trump. i think this is something very positive. r the united states and mexico. the first reason for this call, mr. president is first of all to celebrate the understanding we have had between both negotiating teams. on nafta. thi

these they used to call it nafta.exico trade agreement, get rid of the name nafta. rob: it is tuesday, august 28th, sealing the deal, donald trump setting a new bilateral trade agreement with mexico. jillian: to canada, if you don't join the party will get punished. rob: bruce ohr on the hot seat. jillian: demanding the doj official in his wife admit they were part of an anti-trump conspiracy.

we will get rid of the name nafta.states was hurt badly by nafta. >> president trump says nafta cost hundreds of thousands of jobs. specifically auto jobs. this sets higher standards and requires north american cars with a higher percentage of parts made in mexico and the u.s. the trade representative says this will create more jobs. >> there will be more mexican jobs. we will squeeze out people not in the region. it is a big win for manufacturers. >> he says it is now time for canada to come to the table and president trump gave ottawa until friday to agree to the changes and threaten tariffs on canadian cars. in response, canada called it progress and necessary to rejoin talks. the canadian foreign minister heads to washington today. wall street hit record highs on the deal. the wall street editorial board says this may be premature. writing, we are glad to see president trump step back from the suicide of in thnafta withd. >>> we are ten weeks out from the midterms and north carolina's congressional map may have to