Economics Professor Looks at the Mexico Trade Deal

Pundits and traders alike seem to be optimistic about the emerging details of the new trade deal announced by President Trump last week.

Much of the deal announced has to do with cars -- what percentage of parts need to come from the U-S and Mexico in order to avoid tariffs, as well as duties charged on cars from existing factories versus those from new factories. The President himself also said it would be a great deal for American farmers.

Dr. Peter Crabb is an Economics Professor and says it's not an agreement that's going to excite free trade advocates, but it could be a good first step...

Canada, Mexico and the United States implemented the North American Free Trade Agreement, known as NAFTA, in 1994. Mr. Trump has frequently attacked NAFTA and other multilateral trade deals, saying he favors one-on-one agreements with countries instead.

The agreement is written to last for 16 years, but would allow the countries involved to revise or modernize aspects of the deal every six years. The pact would continue for another 16 years after it is revised.