The Latest: US-Mexico 'understanding' could overhaul NAFTA

The Latest: US-Mexico 'understanding' could overhaul NAFTA
FILE - In this Aug. 16, 2017 file photo, the national flags of Canada, from left, the U.S. and Mexico, are lit by stage lights before a news conference, at the start of North American Free Trade Agreement renegotiations in Washington. President Donald Trump says the prospects are "looking good" for an agreement with Mexico that could set the stage for an overhaul of the NAFTA. "A big deal looking good with Mexico!" Trump tweeted Monday, Aug. 27. (AP Photo/Jacquelyn Martin, File)

WASHINGTON (AP) — The Latest on a U.S. trade agreement with Mexico (all times local):

11 a.m.

President Donald Trump is announcing a trade “understanding” with Mexico that could lead to an overhaul of the North American Free Trade Agreement.

Trump made the announcement Monday in the Oval Office, with Mexican President Enrique Pena Nieto joining by speakerphone.

Canada, which is part of NAFTA, is not participating in the announcement. Trump says negotiations with Canada have yet to begin and is calling on the country to negotiate fairly. He’s threatening anew to slap tariffs on Canadian cars if they fail to do what he wants.

Trump says the call is being held to “celebrate the understanding” the U.S. and Mexico have reached on trade.

He says, “It’s an incredible deal for both parties.”

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10:25 a.m.

President Donald Trump says the prospects are “looking good” for an agreement with Mexico that could set the stage for an overhaul of the North American Free Trade Agreement.

Trump tweeted Monday morning: “A big deal looking good with Mexico!”

U.S. and Mexican negotiators worked over the weekend to narrow their differences. Once they reach an agreement, the third country in NAFTA — Canada — would be brought back in to finalize a revamp of the 24-year-old pact.

NAFTA reduced most trade barriers between the three countries. But Trump and other critics say it encouraged U.S. manufacturers to move south of the border to exploit low-wage Mexican labor.

The Trump administration wants a higher percentage of auto production to come from within the NAFTA bloc before qualifying for duty-free status.