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USA and Canada claim victory as NAFTA saved at the last

04 October 2018

The U.S. and Canada reached the basis of a free trade deal Sunday night, a senior Canadian government official said.

He has adopted an "America First" policy and launched a trade war against China, as well as imposed tariffs on steel and aluminium imports from Mexico and Canada.

The USMCA agreement, which does not roll off the tongue anywhere near as neatly as its predecessor NAFTA, will keep its dispute mechanism which was another major sticking point for the Americans and a defined deal breaker for Canada.

Canada's ambassador to Washington says the US and Canada have made a lot of progress in free trade talks but there is no deal. Fortunately, many programs funded by the farm bill, including crop insurance, still have secure funding until the end of this year. The deal still must be approved by all three governments.

"The agricultural community is counting on our elected leaders to ensure that a safety net remains in place during these uncertain times".

"I think we should deal with that", Wildeboer said, before proposing a solution from the Canadian side.

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"There is clearly an opportunity to constructively engage the United States between the achievement of a deal in principle and the ratification or signature of that deal", he said.

Trump's director of the National Economic Council, Larry Kudlow, told reporters today the deal "sends a signal to China that we are acting as one".

"It looks like Donald Trump is the new minister of global trade for Canada", she said.

President Trump formally announced a new trade deal with Mexico and Canada Monday morning. "Canada's closed and supply-controlled system had embarked on a program that essentially dumped milk proteins on world markets and moved American dairy farming and processing jobs, along with thousands of additional high-quality jobs, from the Canada".

"WCIT is encouraged that the administration has struck a deal with Canada and Mexico to revise the NAFTA".

If NAFTA is indeed replaced by the new agreement, which unfortunately is completely unpronounceable as an acronym, it is unlikely that there will be large and dramatic changes to North American trade.

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Canada had agreed to provide USA dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market, the sources said, adding that the Canadian government is prepared to offer compensation to dairy farmers hurt by the deal.

"We would have moved forward with just Mexico", Marshall said.

New rules are created to improve United States auto workers' competitiveness, with 40 per cent of each vehicle required to have been made by people earning at least $16 an hour.

Prime Minister Justin Trudeau leaves the Office of the Prime Minister and Privy Council after an agreement was reached in the NAFTA negotiations in Ottawa, Ontario, Sunday, Sept. 30, 2018.

Industry Week noted: "This provision is an incentive for automotive manufacturers to produce more goods in the United States, given its higher labor costs than those in Mexico".

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USA and Canada claim victory as NAFTA saved at the last