>> We have worked long and hard.>> Potential new rules on auto production announced Monday, part of a revamp of the contentious North American Free Trade Agreement, or NAFTA. Reuters correspondent, David Lauter.>> This trade agreement is a big deal for autos because it requires 75% of the value of cars and trucks in the United States and Mexico to be produced in those two countries.
>> The preliminary agreement, which is so far short on details, is also expected to help US farmers, who export most of their products to Mexico and Canada.>> Mexico's promise to immediately start purchasing as much foreign product as they can. They're gonna work on that very hard.>> The deal unveiled on an awkward phone call Monday between President Trump and Mexico's outgoing president, Enrique Pena Nieto.
>> The president is on the phone.
Enrique, you wanna put that on this phone, please. Hello?>> After finally establishing a phone connection, President Trump also announced a notable change to NAFTA.>> I like to call this deal the United States-Mexico Trade Agreement. I think I think it's an elegant name. I think NAFTA has a lot of bad connotations for the United States cuz it was a rip off.
>> Monday's breakthrough amping up the pressure on Canada to get on board.>> We will see whether or not we decide to put up Canada or just do a seperate deal with Canada, if they want to make the deal.>> Canada was left off to the side while the United States and Mexico pursued this agreement.
Now Canada has exactly one week to come back in and try to sign onto this deal before it gets notified to Congress and gets signed as a bilateral agreement. Canada or course would make it a trilateral agreement.>> Shares of US automakers, which stand to gain from a revamped trade deal rallied sharply on the news.