U.S. And Canada Reach Deal To Replace NAFTA

"I think Canada is going to put a lot of emphasis on the tariffs because aluminum is one of the key strategic sectors in Canada in terms of competitiveness", he said.

Auto exports from Canada to the USA are to be capped at 2.6 million vehicles, if Trump imposes global tariffs on cars on national security grounds.

"I look forward to reviewing this deal to confirm it meets the high standards of Trade Promotion Authority", he said in a statement.

The NAFTA dispute-resolution process will also be kept in the new deal.

With limited details on what USMCA entails, the Times reports that with the new agreement, Canada's dairy management system will ease its protections, allowing the us more access to Canada's dairy products. That started a 90-day clock that would let outgoing Mexican President Enrique Pena Nieto sign the new pact before he leaves office December 1.

Like all negotiations, there was horse trading, but for the Canada there were elements of the new pact that could be viewed as victories.

The new deal gives USA dairy producers more access to Canada's market.

NAFTA had three kinds of dispute settlement systems.

Canada is "in a much more stable place than it was yesterday", he later added.

He said under the agreement Class 7 milk pricing will also be scrapped. In addition, Canada will get rid of the "Class 7" pricing system that was seen as disadvantaging USA farmers.

The deal aims to brings more jobs into the United States, with Canada and Mexico accepting more restrictive commerce with the United States, their main export customer.


Daniel Ujczo, a trade attorney with the Dickinson Wright law firm who has followed the talks closely, said he expects the USA to get more access to the Canadian dairy market. When told that he seemed confident of congressional approval after his announcement, he said he was "not at all confident" - but not because of the deal's merits or defects.

"This has happened, despite assurances that our government would not sign a bad deal for Canadians", Pierre Lampron, the organization's president, said in the statement.

In the end, Trudeau made a concession on Trump's biggest demand, agreeing to ease barriers to entry in Canada's protected dairy market.

According to people briefed on the negotiations, Canada will ease protections on its dairy market and provide access that is similar to what the United States would have gained through the Trans-Pacific Partnership, a trade treaty that Trump withdrew from past year.

USA drug companies will also now be able to sell products in Canada for 10 years before facing competition from generics, up from eight years. Dairy Farmers objected to this, too, but the once-obscure dairy classification had become a lightning rod of discontent for Trump.

"It's a great win for the president and a validation for his strategy in the area of worldwide trade", a senior Trump administration official said.

"We will continue to engage with USA and Canadian officials to seek a resolution of the tariffs on aluminum prior to final approval of the new agreement", Rio said in a statement.

Trudeau arrived at his office Sunday night but did not comment as he walked by reporters ahead of the unusual late meeting with his ministers. Canada exports a smaller percentage of steel but the tariff is higher at 25 percent. A similar agreement between Mexico and the US preserves duty-free access to the USA market for vehicles that comply with the agreement's rules of origin.

Trump's so-called "232 tariffs" were named for Section 232 of the Trade Expansion Act of 1962 and allow the USA president to restrict imports for national security.

Foreign Affairs Minister Chrystia Freeland says all farmers in supply management systems will be fairly compensated for the additional market access being given to trading partners in the deal.

  • David Armstrong