Trump rewrites rules of trade with new deal

He confirmed that the United States sought assurances that the new proposed trade deal wouldn’t leave a “back door” for other economies to come through Canada into North America.

“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st Century: the United States-Mexico-Canada Agreement (USMCA)”, the US and Canada said in a joint statement Sunday.

Canadian dairy farmers have panned the renegotiated trade pact between Canada, the USA and Mexico, saying the new deal will undercut the industry by limiting exports and opening up the market to more American products.

“That was meant to encircle China so that Canada, in particular, or Mexico, would not enter into trade negotiations”, with Beijing, Shannon O’Neil, a trade expert at the Council on Foreign Relations, a think-tank, told Al Jazeera.

The agreement reached Sunday gives USA farmers greater access to the Canadian dairy market.

Canadian Prime Minister Justin Trudeau on September 30 called it “a good day for Canada” after negotiators worked frantically ahead of the USA -imposed midnight deadline.

Trudeau said he would have more to say Monday.

But the region’s access to the OH turnpike and I-75, the Port of Toledo and a variety of railroads could make this reworked USMCA a better deal for OH than NAFTA.

President Trump is making good on his campaign pledge to renegotiate NAFTA.

He was responding to questions about a section in the new United States-Mexico-Canada Agreement (USMCA) that lays out a set of obligations for any of the USMCA partners seeking a bilateral free-trade agreement with a “non-market economy”.

A US official quoted by Reuters said the aim was for the agreement to be signed by the end of November before being submitted to the US Congress for approval.

In a tweet Monday, the president announced the new name of the accord.

President Trump has long threatened to pull the United States from NAFTA.

The Trump administration officially notified Congress of the US-Mexico trade agreement on August 31.

The trade deal with Canada follows an agreement last month between the US and Mexico, which eliminated some tariffs on goods traded between the two countries. “NAFTA is a proven success”.

“These measures will support many – hundreds of thousands – American jobs”, Mr Trump said.

On Monday, Trump claimed that his aggressive protectionist trade policies against other countries, namely China, are pressuring other nations to seek new terms with the USA to avoid possible commerce disputes. Under the new rules, only cars that are 75 percent made in North America will qualify to escape tariffs, up from 62 percent under NAFTA. These alterations aim to encourage automakers to shift production away from Mexico and to Canada or the United States instead. Ford and General Motors have lowered their profit forecasts for 2018, citing higher aluminium and steel prices caused by new USA tariffs. In the aftermath of a disastrous G-7 summit in Quebec in June, Trump called Trudeau “weak” and “dishonest”.

Dispute settlement: NAFTA’s dispute-settlement system, which allows member countries to bring grievances against other members over allegations of unfair trading practices, will remain the same, a key win for the Canadians.

Canada also agreed to get rid of its two-year-old Class 7 pricing agreement that has restricted US exports of ultra-filtered milk used to make dairy products.

Canada agreed to provide US dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market, Canadian sources said, adding that the Canadian government is prepared to offer compensation to dairy farmers hurt by the deal.

But Heyman said Trump’s attacks against America’s closet ally will cause lingering damage to the relationship.

“It has been shocking and disappointing and upsetting. I think Justin’s a good person who’s doing a good job”.