The United States and Mexico announced Monday that they have tentatively agreed to terms for a new trade agreement, one that has the potential to reshape the North American Trade Agreement for years to come.

No information has been released on how the agreement would affect immigration. Nor is it clear whether Canada will be part of the deal, though officials said they hoped Canada would come on board by the end of the week.

Trump has made renegotiating NAFTA a key part of his trade and immigration policies. Negotiations began shortly after Trump took office, with the president saying he would withdraw the U.S. from the trade agreement if it is unable to reach a better deal.

BAL Analysis: The U.S.-Mexico trade deal has the potential to reshape NAFTA, though many of the details remain unclear at this point. Canada’s position is not yet known and any final agreement would likely have to be approved by Congress before it could take effect. NAFTA’s immigration provisions will remain in place unless a new deal is finalized or the U.S. withdraws from NAFTA. BAL will continue to monitor developments on the trade negotiations and will update clients on any significant changes.

This alert has been provided by the BAL U.S. Practice group. For additional information, please contact

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