Trump said Monday that the United States and Mexico had reached an accord to revise key portions of the NAFTA and would finalize it within days, suggesting he was ready to forgo Canada from the three-way trade pact if the country did not get on board quickly.
The agreement reached with Mexico is effectively a revised Nafta, with updates to provisions on the digital economy, automobiles, agriculture, and labor unions. The core of the trade pact, which allows American companies to operate in Mexico and Canada without tariffs, remains the same.
Trump also said it’s not the right time for trade negotiations with China, quelling expectations for a near term deal.
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The Ports of New York and New Jersey reported their best month ever for inbound container volumes, with one trade expert seeing the looming threat of tariffs driving some of the volume. The third-largest container port by volume in the U.S. saw July inbound volumes reach 322,093 twenty foot equivalent (teu) in containers for July.
"I compare it to the burning of the ancient Library of Alexandria. You lose the accumulated evolutionary record of thousands of years that never can be recovered."
—Mercedes Bustamante, ecologist at the University of Brasilia, on the devastating effects of deforestation in Cerrado
In other news:
Mexico pact eases car makers’ concerns
Deal provides clarity on the new rules for building vehicles across the region. (WSJ)
John McCain: American hero
He acted with honor and integrity, no matter the personal costs. The rest of us should follow his example. (Bloomberg)
Soy boom devours Brazil’s tropical savanna
Industrial farming in South America’s largest savanna has turned Brazil into an agricultural powerhouse, but destruction of the Cerrado biome is hastening global warming. (Reuters)
American companies are raising prices at a brisk pace
President Donald Trump is giving many businesses an unexpected benefit on top of lower taxes and regulatory relief: pricing power. (Bloomberg)
Georgia port head hints at several inland ports across state
Chatsworth facility opens today, may be harbinger of things to come. (DC Velocity)
Data due Thursday are expected to show that inflation picked up in July. The personal consumption price index that the Fed targets probably rose 2.3 percent in July from a year earlier, the most in more than six years, according to the median estimate of economists surveyed by Bloomberg News. After stripping out volatile food and energy costs, the core index probably rose 2 percent in July, versus 1.9 percent in June.
Hammer down, everyone!