U.S., Canada reportedly conclude new NAFTA deal

U.S., Canada reportedly conclude new NAFTA deal

U.S., Canada reportedly conclude new NAFTA deal

Word of the deal came as Canadian Prime Minister Justin Trudeau convened a 10 p.m. (0200 GMT Monday) Cabinet meeting to discuss the North American Free Trade Agreement talks.

The deal represents a win for Trump, who has derided Nafta for years and threatened to pull the United States from the pact if it was not rewritten in America's favor.

Insiders got wind of a breakthrough after 14 months of tumultuous talks and just hours before USA and Mexican trade authorities were set to publish their own trade agreement without Canada as a signatory.

The deal, which still has not been announced, comes after Prime Minister Justin Trudeau called a meeting with his Cabinet late Sunday after Canada and the US made substantial progress in free trade talks.

The prime minister, the foreign affairs minister, and Canada's ambassador to the USA are leading the Canadian negotiations from Ottawa, as the US and Mexican imposed deadline of September 30 at midnight closes in. Trump has publicly groaned about NAFTA's name.

The United States-Mexico-Canada Agreement (USMCA) updates and replaces the almost 25-year-old North American Free Trade Agreement (NAFTA), which President Donald Trump had labeled a disaster and promised to cancel.

In a joint statement, Canada and the United States said it would "result in freer markets, fairer trade and robust economic growth in our region". "It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the almost half billion people who call North America home", the statement said. Pierre Lampron, president of Dairy Farmers of Canada, said in a statement. "We're very unhappy with the negotiations and the negotiating style of Canada".

The US Chamber of Commerce has said it would be "unacceptable to sideline Canada, our largest export market in the world".

Ottawa and Washington remain at odds over Canada´s managed dairy sector, and the dispute resolution provisions in NAFTA.

Chapter 19 and the 232 tariffs had emerged in recent days as the two biggest challenges in front of negotiators.

A senior administration official, who asked not to be named, tells the Post that the deal includes better protection for labor rights, the environment and intellectual property than trade deals made under the Obama administration.

It will also be called the "United States-Mexico-Canada Agreement", or USMCA.

Some bank CEOs have also raised other issues they consider vital to Canada's competitiveness with the Prime Minister, including the government's stance on energy and pipelines.

"In some countries, including Canada, a tax on cars would be the ruination of the country". The procedure was essentially a fast-track version of the World Trade Organization's dispute settlements but only applied to the three NAFTA members.

More details will be passed along as they become available.

A source told Reuters that Mr Trump had approved the deal.

The Trump administration has been working to sign a new trade deal before Mexican President Enrique Peña Nieto leaves office on December 1. Trump is renegotiating NAFTA under what is known as Trade Promotion Authority.

Canadian Prime Minister Justin Trudeau has said repeatedly that Chapter 19 is a "red line for Canadians" that can not be crossed.

The president has slammed NAFTA dating back to his presidential campaign.

Officials are talking continuously by telephone.

Reports of a deal caused a jump in the Canadian dollar on early Asian trading with the loonie up 0.7% from its Friday close at $1.2814.

The political stakes are high on both sides of the US-Canadian border: Trump needs to look strong heading into the November midterm elections, where his Republican Party is fighting to keep control of Congress, while Trudeau does not want to be seen as caving before next year's general election.

In addition to opening the door for a NAFTA rewrite, the deal could also ease trade tensions between the United States and Canada over Trump's steel and aluminum tariffs.

In addition, Ottowa has argued tariffs imposed on steel and aluminum imports should be halted as part of a new NAFTA deal.

Related news

[an error occurred while processing the directive]