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The sky isn’t falling. That’s the message coming from Corporate America after President Trump reached a deal to revise the North American Free Trade Agreement.
The accord, which covers $1.2tr in commerce, arrived after months of negotiating amid concern that Trump would exit the treaty with Mexico and Canada and upend global supply chains.
“We were concerned when hanging over our heads was total withdrawal,” said Matt Priest, chief executive officer of the Footwear Distributors and Retailers of America. “To put that to bed is great and to have something that includes Canada, and not just Mexico, is fantastic."
The Trump administration had already agreed last month to an updated relationship with Mexico, which increased pressure on Canada to make concessions to join the deal. The accord — now dubbed the United States-Mexico-Canada Agreement, or USMCA — needs to be approved by lawmakers from all three countries.
The benefits for U.S. companies that rely on duty-free trade with Canada and Mexico are largely that Nafta will live on, with a few modest tweaks. Here’s a rundown by industry:
Autos
Stocks of U.S. automakers including General Motors Co. rose on Monday after they avoided the prospects of steep tariffs and disruption to supply chain that spans all three countries.
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