Canada, US and Mexico's make 'historic transaction' with new trade agreement

Canada, US and Mexico's make 'historic transaction' with new trade agreement

Canada, US and Mexico's make 'historic transaction' with new trade agreement

The new agreement, known as the United State-Mexico-Canada Agreement or USMCA, has a lot of wins for US auto workers.

-Mexico-Canada trade deal, saying President Trump "deserves praise" for trying to improve upon the old NAFTA.

Despite the agreement, President Trump confirmed USA tariffs on steel and aluminum imports will remain in place.

Canada has agreed to provide US dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market.

He said the new deal was "much more reciprocal" than Nafta, which he described as "perhaps the worst trade deal ever made".

Kind of. The major USA stock indexes showed gains this morning, with the Dow rising more than 250 points (a gain of almost 1 percent.) But Julia Coronado, an economist and the founder of the company MacroPolicy Perspectives, told us that while this market rally is probably a reaction to the agreement, the pact itself is rather "unimpressive". But it keeps a North American Free Trade Agreement (NAFTA) dispute-resolution process that the USA wanted to jettison and offers Canada protection if President Trump goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the U.S.

Juan Carlos Baker, Mexico's under secretary of foreign trade, is expected to present the details of the agreement to the Mexican senate, according to the Times.

On Sunday, it was announced that the parties had reached a new agreement, which is now being referred to as the U.S. -Mexico-Canada Agreement - or USMCA.

The official also says it exempts tariffs on 2.6 million cars and on diary it preserves supply management in Canada and agrees to give similar market access like the Trans Pacific Partnership that Trump scrapped. The investor-state dispute-settlement system, which allows investors to bring grievances against member-country governments, will be phased out for the USA and Canada, while certain industries such as energy will be able to bring cases against Mexico.

While Peter Navarro, the director of the White House National Trade Council, said the new deal means that "NAFTA is dead", the USMCA still retains large swaths of the original deal.

However, the deal still needs to be ratified in Congress, which President Trump noted could be a challenge. They suspected Canada, which had said it wasn't bound by US deadlines, was delaying the talks until after provincial elections Monday in Quebec, where support for Canadian dairy tariffs runs high.

"As I say, the United States is respected again", he told the press conference.

"It's going to be very critical to Canadian consumers to continue to promote Canadian producers", Smith said. This is a truly extraordinary agreement for the US, Canada and Mexico, Trump added.

With the new deal, Canada will increase market access for US dairy, poultry, and eggs.

In exchange, Canada and Mexico received relief from the impending vehicle tariffs Trump might impose.

"Specifically, we will seek clarity on how the agreement addresses the existing tariffs on Canadian steel and aluminium, as well as how it will ensure that tariffs and quotas upon Canada's auto sector exports will be avoided", Beatty said.

USA officials, in recent weeks, had been adamant that the text for a new deal - whether it would only be with Mexico or also include Canada - to be released by September 30 to meet congressional notification requirements and to allow outgoing Mexican President Pena Nieto to be able to sign the deal before he is succeeded by Andres Manuel Lopez Obrador, a left-wing populist.

The new agreement was reached before Sunday's midnight deadline and will incorporate the United States' trade deal with Mexico that was reached in August.

It said the measures will have "a dramatic impact not only for dairy farmers but for the whole sector".

"We've been sacrificed", he said in an interview.

David Taylor, chairman of the board of the B.C. Dairy Association and B.C.'s representative with the Dairy Farmers of Canada, said when he heard the news, he was angry and disappointed.

Related news

[an error occurred while processing the directive]