US and Mexico reach a preliminary trade deal

The United States and Mexico have reached a preliminary agreement resolving key bilateral trade issues, a source familiar with the negotiations told CNN. President Donald Trump is expected to address the developments. Negotiations between the United States and Mexico resolved a major stumbling block on auto manufacturing, one US official said. Under the current law, about 62% of the parts in any car sold in North America must be produced in the region or automakers have to pay import taxes. The new preliminary agreement would increase that requirement. The agreement between the two countries could restart negotiations on NAFTA with all three parties -- the United States, Mexico and Canada. "Canada is encouraged by the continued optimism shown by our negotiating partners," said a spokesperson for Canadian Minister of Foreign Affairs Chrystia Freeland...MORE