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Deal with our neighbor to the south. >> we used to call it nafta, now we call it the united states mexico trade agreement and we will get rid of the name nafta which has bad connotation because the united states was hurt badly by nafta. >> reporter: the outgoing mexican president was as enthusiastic about the deal as donald trump was, even saying he would like to give donald trump a big hug. he acknowledged getting to it was tough. >> and negotiation that has been difficult and a hard negotiatio...

People and in canada. the latest goes to the eu japan economic partnership that accounts for one third of the world economy. its a brand new trade deal that leaves the u.s. out in the cold. heres the new deal thats been agreed to, tariffs on agricultural products traded between the united states and mexico will remain at zero. the new requirements focus on car parts and production. 75% of auto content must be made in the united states and mexico. thats up from the original nafta requirement of 6...

President later this year which could blow it up before its even real. negotiations could be forced to start all over again. susan lee is here. what is in this agreement that we should never call nafta? >> this is a bilateral agreement between the u.s. and mexico. 16 years. a review after six years. the sunset clause is very controversial. that basically terminates the deal after a first amount of time, this is a review period where they have consultations and tweaks. autos was a big sticking po...

It has a bad connotation because he had as it was hurt very badly by nafta for many years. >> . >> outgoing mexico president was enthusiastic as the deal is president trump, he even said he would like to give president trump a big hug. he acknowledged getting to an agreement was tough. >> very grateful mr. president . a negotiation that has taken months. it is been difficult, complex. ed has been a hard negotiation altogether. >> the biggest change of the trade relationship as rules of origin fo...

>> reporter: the outgoing president was as enthusiastic as donald trump, he said he would like to give donald trump a big hug but he acknowledged getting to an agreement was tough. >> negotiations have been difficult. it was difficult. >> the biggest change in the trade relationship is rules of origin for cars. 75% of components to build cars must be made in mexico or the us, 40 for 45% of auto content must be made by workers earning $16 an hour. the deal increases trade on agricultural goods ke...

Recognize your political will and your participation in this. it has been, a very hard negotiation altogether dismal moments of course. but i truly acknowledge now the fact that we have been able to reach an agreement. >> by the way, that was the voice of a translator. so in terms of automobile manufacturing, it changes the origin of auto parts. 75% of auto content must be made in the states and mexico and 40-45% of auto content must be made by workers earning at least $16 per hour. there are a ...

Half of nafta. what can you tell us about that and what happens next? >> i like that by the way, i think we can work with that. effectively what the white house is telling us is this is an opportunity to protect american workers but more importantly, it also enhances the opportunity to make better trade deals with our partners to the south and may be hopefully get canada on board. as you know, their foreign minister is en route here to washington hoping to stave off some more possible tariffs th...

Negotiations, saying at one point he would like to give him a big hug. >> and i am really grateful mr. president. i want to tell you that i greatly recognize and acknowledge your political will and your participation in this. this has of course been in negotiation that has taken months, its been difficult and a very hard negotiation. >> that of course the voice of the interpreter, not the mexican president. this changes the rules of origin for the auto parts. 75% of auto content to be made in th...