US, Canada Agree To New NAFTA Agreement18
After months of discussions and the possibility of bilateral agreements, Canada has agreed to join the United and Mexico in a new North American Free Trade Agreement deal.
Dubbed the United States-Mexico-Canada Agreement, or USMCA, Canada struck a last-minute deal late Sunday night that nearly pushed past the U.S.-imposed midnight deadline. The Detroit News reported both U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said in a joint statement the new agreement will “strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.
The new deal tentatively replaces the 24-year-old NAFTA treaty and fulfills a significant campaign promise of President Trump. The president said he would renegotiate the trade deal or get rid of it entirely, which had initial support from the United Auto Workers. On the automotive manufacturing front, a new provision will require 40 percent to 45 percent of an automobile to be built in countries where workers earn at least $16 an hour. Anything under the wage requirement will not be subject to USMCA duty-free benefits.
Between the U.S and Canada, the agreement opens up the Canadian dairy market to U.S. farmers, but Canada convinced U.S. negotiators to keep a NAFTA-dispute resolution process the U.S. wanted to kill. The process also gives Canada protection from any tariffs the Trump administration may place on the country for cars, auto parts and truck imported into the U.S.
President Trump tweeted Monday morning and said the agreement “solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the U.S. and will bring all three Great Nations together in competition with the rest of the world” before adding “Congratulations to Mexico and Canada!”
Leaving his office, Canadian Prime Minister Justin Trudeau said, “It’s a good day for Canada.”
We’ll bring you the latest on the new free trade agreement as it comes.
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So auto Andy parts export from Canada are mostly not taxed
US farmers can export dairy to Canada
And Canadians can buy more stuff online from US retailers without paying duties
That’s the gist, or are news reports still too fresh?
should read “..auto and parts exported..”
Thank you, President Trump.
Canada gave in and America got a better deal. Just like he said we would.
As far as the automotive industry goes, Canada wont really be affected since it mostly revolves around minimum wages which are more for Mexico, and also how much of the vehicle components are sourced within North America – that more so affect GM a US company with entire vehicles assembled overseas.. so a US company takes the hit. Steel and aluminum exports from Canada still have tariffs but there is a strong chance they will be lifted or greatly reduced.
Canadian farmers just got screwed. But Canadian standards for milk are much higher, and safer, than USDA approved milk. Meeting Health Canada standards will change the ‘production’ process for US dairy farmers, which inturn will increase prices. How much is the door to canada actually opened? Depends on price to the US farmer I guess. ANd if farmers are going to meet stricter health standards for milk, will they then follow suit for their USA intended milk? Then raising prices for the US consumer of their domestic dairy?
Sounds like that dairy deal could subsequently cost the US people more money, and ultimately there will be Canadians who will only buy Canadian milk, just like Americans like to buy American.
Canada gets to buy 5x more items (value) in the US without paying duties than before. That’s good for the US retailers, but with the way the dollar is, not many canadians are shopping across the boarder
So tell me how Trump won? Other than weakening relations with Canada and Mexico? And once again looking like and international ignorant donkey
On top of that. Ford is already claiming a $1 billion, billion with a B, loss in profits due to metal tariffs. Even though they source 95% and 98% steel and aluminum from the US, the US suppliers can jack prices because imports are taxed 25%. So Ford looses profit, steel industry gains profits, and the common man is now buying a more expensive vehicle because of the cost to produce. Who wins?
Goldman claimed this would happen back in the Spring, and said GM would fall victim to similar profit losses
Andrew, deal is done. All sides AGREED. You are on the wrong side of history, buddy.
the deal is done, you’re right, but the american people (well, trump voters.. not voters, current supporters, they aren’t one in the same anymore) aren’t in for the win they were promised or are expecting.
NAFTA IS DEAD!
“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).
USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region.”
Told ya NAFTA was dead. Poor Canada just got shamed by Mexico and the U.S. Dairy market is open and FAIR TRADE NOW!
NAFTA was outdated and irrelevant.
And Canada made a political misstep by not coming to the table earlier. It ultimately worked out for everyone in the end though.
NAFTA IS DEAD!!!!
LONG LIVE COVFEFE!!!!!
i’ll wait for the details.
trump would declare a pile of dog poop a bigly victory if he found it in front of trump towers.
Stupid AZZES!!!!!!. It’s the same agreement updated. They just called it another name.
Now it’s time to update the American education system to help all these stupid people who live in a different reality.
“the agreement opens up the Canadian dairy market to U.S. farmers”
Hahaha… Remember when Trudeau and Canada said it would “never” trade fair/ reduce it’s taxes on dairy? Just like it said NAFTA would never be renegotiated, eh?
Trump wins again!
So you are saying that Trump “grabbed em by the Trudeau”?
That’s what it looks like.
Dairy market is open a whole BIG 3.5%. Inform yourself Id!ot!!!!
Canada initiated the NAFTA agreement STUP!D. They were asking for years to update trade with Mexico and reflect new tech.
The original NAFTA agreement was 2000 pages long. I’m so glad the Trump fangirls have taken the time to carefully evaluate the latest agreement’s merits (that haven’t been finalized let alone revealed) so I don’t have to. If that’s not great I don’t know what is.
USCAM would’ve been more apropos.
Well once you cut through the general BS here this is a better more up to date agreement where all parties have gained ground and there has been added protection from cheap imported parts being dumped here.
The way it was the plants left but China was working to dump cheap labor parts into these plants. It now is a lot more difficult as well as just making the parts in Mexico too.
There is no one hundred percent solution but the first deal really lost ground for the US and this agreement has gotten more back than what we had.
3.5% sounds small but factored into the $16 billion dollar dairy market of Canada that is a decent gain over nothing.
The key to this in the future is the up dating of the agreement as time goes on to adjust to market changes.
What was impressive is most said nothing could be done. Now it has been done and even with all parties pleased with the results.
Canada could have had an even better deal has Justin had not been the last to the table. I hope voters remember this.