Monday, 12 November, 2018

US, Canada and Mexico praise 'historic' NAFTA replacement deal

US, Canada and Mexico praise 'historic' NAFTA replacement deal US, Canada and Mexico praise 'historic' NAFTA replacement deal
Nellie Chapman | 02 October, 2018, 16:14

Elsewhere, US farmers will get greater access to Canada's dairy market through an increased quota on foreign imports.

President Donald Trump portrayed it as a groundbreaking pact. Watch the president's remarks in the player above.

Paul Evans, a professor at the University of British Columbia, said the "astonishing" clause appears to pull Canada into line with the U.S.as the Americans engage in an escalating trade war with the Chinese - as of last month, the Washington and Beijing had slapped new tariffs on US$360 billion worth of bilateral trade in goods.

The United States, Canada, and Mexico have made an agreement on a new trade deal that replaces NAFTA.

The new deal avoids the collapse of the North American Free Trade Agreement or NAFTA.

On Monday, Trump tweeted a congratulatory message to Mexico and Canada.

And he cheered the fact it will give American farmers and dairy producers greater access to markets in Canada and Mexico, protect auto manufacturing jobs and encourage innovation on USA soil.

Sen. Rob Portman, R-Ohio, said that although he has not seen all the details of the pact, "when combined with the new agreement with Mexico, it will help Ohio workers, farmers and businesses by leveling the playing field on trade and expanding the export of American-made products".

Trudeau repeatedly said it was a "good day" for Canada.

"We know full well the American administration targeted the complete scrapping of supply management and what we did with this agreement was to protect supply management for future generations because it is a system that works", Trudeau said.

While President Donald Trump hails a revised NAFTA as the "most advanced trade deal in the world", some analysts are wondering what all the hype is about.

US, Canada and Mexico praise 'historic' NAFTA replacement deal

"Justin is a good person who is doing a good job", Trump said.

The US and Mexico were pushing to get the new deal through their legislatures before Mexican President-elect Andres Manuel Lopez Obrador takes office on December 1.

President Trump pulled the USA out of the Trans-Pacific Partnership as soon as he took office in 2017 and demanded the renegotiation of NAFTA.

That's a huge relief to a slew of industries that were rattled by Trump's repeated attacks on NAFTA, the governments in Mexico City and Ottawa and Republicans on Capitol Hill who support free trade.

Some lawmakers immediately expressed relief that Canada had been reinstated in the regional trading bloc.

Canada has agreed to join the trade deal that the US and Mexico announced last month, according to two people familiar with the matter. "NAFTA is a proven success". But Trump and other critics said it encouraged manufacturers to move south of the border to take advantage of low Mexican wages, costing American jobs. Trump's advisers view the trade pact as a political victor in battleground states critical to the president's 2016 victory and home to tens of thousands of auto workers and manufacturers who could benefit from the changes.

Starting in 2020, to qualify for zero tariffs when crossing borders, a vehicle or truck must have 75 percent of its components manufactured in Canada, the USA or Mexico, up from 62.5 percent now.

Both Freeland and Trudeau say it's important to remember that when the negotiations began over a year ago the US aim was to dismantle supply management entirely, and Canada did not let that happen.

But relations between Ottawa and Washington soured. He's a professional, I'm a professional. Canada and Mexico rank first and second among export markets for USA companies.

The Canadian dollar jumped to a four-month high in response to the deal. Canadian dairy farmers surrendered about 1.5 per cent of domestic market access through the Comprehensive Economic Trade Agreement between Canada and the European Union, 3.25 per cent when the 12-nation Trans-Pacific Partnership was finalized and now about 3.6 per cent in the USMCA. "In some ways it has been traumatic for many", Heyman said.

This is a developing story.