US-Mexico-Canada trade deal agreed

NAFTA is out, and a replacement North American trade deal USMCA (United States-Mexico-Canada Agreement) has just been agreed to.

Financial Post: Revamped NAFTA deal, renamed USMCA, will ‘rebalance’ North America trade after Canada reaches 11th hour agreement

Canada and the U.S. ended weeks of intense bargaining Sunday with a last-minute trade deal that gives American farmers major new access to the dairy market here, but preserves a dispute-resolution system the United States wanted killed.

The deal capped a frantic weekend of negotiations and includes several provisions to “rebalance” the North American trading relationship, a Trump administration official said in a conference call shortly before midnight.

It is to be renamed USMCA – United States Mexico Canada Agreement – after President Donald Trump said the name NAFTA had “bad connotations.”

“This is going to be one of the most important trade agreements we’ve ever had,” said another American official on the background-briefing call. “We think this is a fantastic agreement for the United States, but also for Mexico and for Canada.”

The officials highlighted in particular that the U.S. had won a “substantial” increase in access to the Canadian dairy market, and that Canada had agreed to end the “class-seven” milk program that undercut American sales of a special dried-milk product.

That concession is a “big win for American farmers,” one official said. “We’ve got a great result for dairy farmers, which was one of the president’s key objectives in these negotiations.”

But Canada appeared to score a significant victory, as well, with the U.S. agreeing to keep intact the chapter-19 mechanism for resolving disputes over anti-dumping and anti-subsidy duties, which American negotiators felt undermined the autonomy of their courts.

The U.S. has also agreed to provide an “accommodation” to protect Canada’s auto industry in case the States decides to impose tariffs on auto imports, while Canada consented to extend the patent protection for an important class of prescription drugs – called biologics – from eight to 10 years, the officials said.

Reuters Factbox: Details of the new North America free trade deal

A number of the things negotiated sound similar to what was included in and disputed in the  Trans-Pacific Partnership that Trump pulled the US out of.

 

 

12 Comments

  1. Corky

     /  October 1, 2018

    Damn..Trump delivers.

    • Gezza

       /  October 1, 2018

      Hopeless. Try and make a word out of USMCA. 🙄

      Should be CUSMA or MUSCA.

      Sounds like Canada won.

      • High Flying Duck

         /  October 1, 2018

        The US got actual concessions. Canada’s wins were retention of existing provisions. How is that a Canada win?
        The USA are the only country to gain in the negotiation.

        • Gezza

           /  October 2, 2018

          (Shhh. Corky will hear you.)

          • Corky

             /  October 2, 2018

            I have no problem with people shouting from the sidelines. Trump works on America first, and making America great again.He laid that on the table when he assumed office.

            Meanwhile in Europe…!!??

  2. Rickmann

     /  October 1, 2018

    You bet your sweet bippy – and with the mid terms just down the track.

  3. Trump praising himself is not unusual.

    • Trump says the agreement is ‘the most modern agreement’ in the history of the United States. Given that it has just been agreed on (subject to Congress approval) that is not a very meaningful claim.

      • High Flying Duck

         /  October 2, 2018

        At least it’s true.

      • Corky

         /  October 2, 2018

        Claims aren’t important in the scheme of things. Delivering on promises is.

  4. MaureenW

     /  October 2, 2018

    The new agreement also prevents China importing cars into the US via Canada tariff-free. Also with cars imported into the US from Mexico, the wages of manufacturing and assembly workers must be more than $16 per hour. This either forces up Mexican wages and helps stem the flow of Mexicans coming into the US looking for higher wages.

    • Corky

       /  October 2, 2018

      It does make ”the wall issue” a little complex. Mexico and Trumpy hammer out a trade agreement in good faith then hammer each other over building a wall.😃