President Trump announces new trade deal with Mexico, Canada

The two countries will now join Mexico in updating the 1994 accord, which will be renamed the United States-Mexico-Canada Agreement. He reiterated that the U.S.is now engaging in talks with the aim of preserving the current program and protecting industry needs.

When Trump first announced the tariffs on Canadian steel and aluminum, he said it was because we refused to sign his new NAFTA agreement.

All of that earned the administration wary praise Monday from business groups, farmers, investors and even some Democratic lawmakers.

“Once approved, this will be a new dawn for the American auto industry and for the American auto worker”, President Trump said.

“This isn’t a revolutionary deal”.

“I want to see San Antonio businesses doing more trade with Canada and Mexico”, Castro said.

What’s in the new deal?

“It’s been a very, very disappointing day”, said Wiens who farms near Grunthal, Man. These provisions allow Canada, Mexico and the United States to challenge one another’s anti-dumping and countervailing duties in front of a panel of representatives from each country.

“When we had the original NAFTA agreements, and Americans were given bigger access to the Canadian market, NAFTA recognized that those industry licences needed to be grandfathered”, he said. “Lots of progress, not there yet”, he said. It must still win approval from the US Congress, which is unlikely to happen until next year.

Securing a replacement for the almost 25-year-old NAFTA would be a major accomplishment for Trump and his chief trade negotiator, Robert E. Lighthizer.

President Trump says is the USMCA is the biggest trade deal in USA history, created to replace the 1994 NAFTA pact. “You do that for political reasons. We don’t like their representative very much”.

In the USA, for example, milk production receives federal government funding of up to 40 per cent, which is equivalent to about $1 trillion over ten years, Hargreaves said. The president called those rules “the most important thing” for him.

Farmers in the United States would also gain greater access to Canada’s dairy market through the deal. Canada would be allowed to ship 2.6 million cars to the U.S. without tariffs, well above the 1.8 million it sent past year, and send $32.4 billion worth of parts without getting hit by tariffs. Additionally, 40% of each auto must be produced by workers making $16 an hour or more to avoid duties.

NAFTA tore down most trade barriers between the United States, Canada and Mexico, leading to a surge in trade among them.

At the same time, he said,”Carmakers are also less able to buy cheaper parts from European or Asian suppliers”.

The measures in the new deal – which Mr Trump dubbed “US MCA” – “will support many – hundreds of thousands – American jobs”. A similar agreement between Mexico and the USA preserves duty-free access to the US market for vehicles that comply with the agreement’s rules of origin.

The National Association of Manufacturers (NAM) in the United States declared itself “extremely encouraged” by initial details of the new three-way pact. “They’re happy but not delighted”, said Doug Porter, chief economist at the Bank of Montreal.

Such judgments are shared by key Democrats.

Another possibility is that members of Congress could force changes to the agreement. He said the deal now faces scrutiny by lawmakers.

The agreement will consolidate the North American region “as one of the most competitive in the world”, according to the Mexican president on Twitter. In fact, the USMC shows the U.S.is bent on dictating the terms of commerce, and smaller partners can either go along or be subject to years of harassment and abuse.

Chinese officials had no immediate response to the Canada deal, and stock markets in Hong Kong and on the mainland were closed Monday.

Dias said he is not thrilled by what Canada conceded in the dairy sector, but he believes there will be a solution out of discussions between the government and the dairy lobby. “We just don’t know at this point”.