(FASTNEWS|COLOMBO) – The United States (US) and Mexico have reached common ground on key trade terms as pressure mounts to complete renegotiation of the 25-year-old North American Free Trade Agreement (FTA).
US President Donald Trump, a frequent critic of the existing deal, announced the apparent breakthrough on Monday (27).
The final outcome remains in doubt with Canada, the third country in the pact, due to rejoin talks on Tuesday (28).
Trump has triggered a year of talks, after threatening to pull out of Nafta.
He demanded renegotiation of the 1994 trade agreement, which he blames for a decline in US manufacturing jobs, especially in the auto industry.
US shares rose and the Mexican peso strengthened on news of the preliminary treaty on Monday.
