U.S. President Donald Trump warmly welcomed Mexican President Andres Manuel Lopez Obrador for the Mexican leader's first state visit in the United States.

The meeting came following years of the Trump administration's crackdown on immigration from the allied country, and threats of severe economic punishment.

The state visit was billed as a celebration of economic ties and the beginning of a new trade pact between the United States, Mexico, and Canada.

The new deal would include better incentives for American factories, which may help keep them from moving overseas. Mexico's labor system will also see sweeping changes in an attempt to break corrupt unions, the New York Times reported.

Why Did the Country Leaders Meet?

At the start of July, the Trump administration formally put into effect the revised North American Free Trade Agreement (NAFTA), effectively overhauling a trade deal that was signed more than 26 years ago.

Under the updated version, titled The United States Mexico Canada Agreement (USMCA), significant changes on cars, labor and environmental policies were imposed. It also affected intellectual properties and digital trade provision, the Vox reported.

A brief overview of the deal includes:

  • Tariffs: Automobiles that have at least 75 percent of their components manufactured in Mexico, the U.S., or Canada are exempt from tariffs.

  • Employee Provisions: Under USMCA, 40 to 45 percent of automobile parts should be manufactured by workers who earn $16 an hour by 2023. Mexico also agreed to overhaul its labor code to give workers more protection.

  • Market: Canada opened up its dairy market to farmers from the United States.

  • Intellectual Property: Copyright now covers 70 years beyond the life of the author. The deal extends copyright terms by 20 years.

  • Digital Trade: The agreement includes a new provision that prohibits duties on music and ebooks. It also protects internet companies from being held liable for content produced and posted by users.

The Trump administration touted the revised pact for providing changes to the trade rules set in the NAFTA. However, many of the deal's requirements have not been fully met. Some may also need to be phased in over the coming years.

How Does Mexico Benefit From the Meeting?

The state visit may allow the Mexican left-leaning populist to reassure long-term investments and discuss long-term strategies to target illegal migration.

According to the White House, Lopez Obrador helped bring down illegal migration of individuals from Central American countries by 85 percent. They noted that the Mexican leader deployed 25,000 National Guardsmen to the northern and southern borders.

The two leaders also discussed prevention measures to combat the spread of coronavirus disease 2019 (COVID-19) that has heavily affected both countries.

Mexico ranks ninth for the most number of novel coronavirus cases. It also ranks fifth highest in virus-related deaths, the USA Today reported.

Meanwhile, the United States leads in both categories. It has also seen a surge in new cases, particularly in the South and West. Experts attributed the sudden spike to the states' reopening.

As of Thursday, Mexico has a total of 275,003 cases and over 32,796 deaths. Meanwhile, the U.S. has reported more than 3,159,400 cases and nearly 135,000 deaths.

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