NAFTA 2.0 will 'definitely' become a pivotal presidential election issue

The U.S. and Canada forged a last-gasp deal to salvage NAFTA over the weekend, following more than a year of tense trilateral negotiations.

One key takeaway from the new United States-Mexico-Canada (USMCA) deal is a clause that stipulates the agreement must be reviewed every six years.

When asked on Tuesday whether the six-year review clause could become a touchstone election issue over the coming years, Stephen Brown, senior Canada economist at Capital Economics, told CNBC: "Definitely."

NAFTA 2.0 'takes away' some uncertainty

Trump, who had long threatened to scrap the NAFTA deal in full, has lauded the USMCA pact as a key electoral promise fulfilled.

But critics of the revamped deal have questioned whether much has really changed from the original accord, prompting Trump to tell reporters on Monday: "It is not NAFTA redone. It is a brand new deal."

China is the biggest part of global trade uncertainty: Fund manager  6 Hours Ago | 02:19

"The NAFTA revamp is an achievement in itself simply because it takes away some of the uncertainty on global trade," Guy de Blonay, fund manager at Jupiter Asset Management, told CNBC on Tuesday.

"Clearly markets have been cheering somewhat… But, of course, China is a much bigger entity and is probably the biggest part of the uncertainty on global trade," he added.

The USMCA deal is subject to approval by Congress.

By Sam Meredith | @smeredith19