USA president cheers new USMCA trade deal, heralds end of NAFTA era

US, Mexico, Canada agree on free trade pact to replace NAFTA

US, Mexico, Canada agree on free trade pact to replace NAFTA

The new deal, dubbed the US-Mexico-Canada Agreement, is expected to be signed by the leaders of the three member countries - US President Donald Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto - in November.

It replaces the 24-year-old North American Free Trade Agreement, which President Donald Trump had called a job-killing disaster. Trudeau pledged to compensate farmers to cushion the blow.

It said the measures will have "a dramatic impact not only for dairy farmers but for the whole sector". That keeps disputes out of USA courts, where Canadian officials felt Canadian firms would be at a disadvantage. It was unclear, however, whether he had authority from Congress to pursue a revamped NAFTA with only Mexico, and some lawmakers said they wouldn't go along with a deal that left out Canada. U.S. Commerce Secretary Wilbur Ross told Fox Business News Monday "there is no timeline" for lifting them, and they are a matter of national security not trade.

While higher Mexican wages may discourage auto makers in Canada and the U.S.to relocate to Mexico, the new rules could create strong incentives for American and Canadian auto makers to move to Asia.

Canada, the United States' No. 2 trading partner, is by far the No. 1 destination for US exports, and the USA market accounts for 75 percent of what Canada sells overseas. Trump wanted Canada to make a concession on dairy imports, and under the old deal the USA did not have access to Canada's dairy market.

"What we felt was possible and reasonable was to offer some additional market access", in the dairy sector, she said. Canada's concessions will total 3.59 percent, according to Wiens. Mexico agreed to allow imports of certain United States cheeses.

Trump took a much different tone at a press conference in NY last week when he claimed to have rebuffed a request to chat with Trudeau at the United Nations. With more American products on store shelves, demand for Canadian dairy products will fall and some domestic processing and expansion projects may be scaled back, he said. "It's not going to resolve any of their issues but they have another dumping ground for their surplus product".

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Canada will open its dairy market further to U.S. producers, and Washington left unchanged the dispute settlement provisions which Ottawa demanded. Americans are drinking less milk and total consumption has tumbled as consumers swap dairy for alternatives such as almond milk.

Previously, Canadians buying online from the USA could only purchase up to $20-Cdn. worth before having to pay import duty. US pharmaceutical winning and Canadian pharmaceutical losing.

"It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our farmers and manufacturers, reduces trade barriers to the USA, and will bring all three great nations closer together in competition with the rest of the world", he tweeted. When a reporter suggested he seemed confident of approval after his announcement, he said he was "not at all confident" - but not because of the deal's merits or defects.

Who is the biggest victor of the new trade pact? "Without tariffs, we wouldn't be standing here", he said. "They may be willing to do that for political purposes", he said.

"There was a lot of tension between he and I ... but it all ended around 12 o'clock last night" when the new deal was reached, Trump told a news conference in the White House Rose Garden.

"However, if the broad lines are as reported, @cafreeland and the Canadian negotiating team have managed to preserve the most important elements of #NAFTA under very challenging circumstances", he said on Twitter.

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