Trade deal with Canada 'new dawn' for auto industry
Oct 02 2018 by Cristina Jennings
U.S. -Canada talks bogged down earlier this month, and most trade analysts expected the September 30 deadline to come and go without Canada being reinstated.
The agreement hammered out late Sunday between the United States and Canada, following an earlier U.S. -Mexico deal, replaces the 24-year-old North American Free Trade Agreement, which tore down trade barriers between the three countries. This also covers things like business patents.
The new deal avoids the collapse of the North American Free Trade Agreement or NAFTA. "Mexico and Canada will be opened up a lot more than they are now".
Yesterday, Trump had said + that India wants to have a trade deal with the USA because it does not want him to impose tariffs on their products.
Maxwell said if the new USMCA agreement is signed by Congress, U.S. dairy farmers will benefit.
"It takes the future hopefulness out of our industry", Bechtel said.
Mexican President-elect Andres Manuel Lopez Obrador has embraced the new deal, his incoming foreign minister said.
In addition to the changes to the dairy market in Canada, officials said it includes stronger protections for workers, tough environmental rules, and updates the trade relationship to cover the digital economy and provides "groundbreaking" intellectual property protections, the official told reporters.
Canada, in turn, failed to secure protections against the mechanism that allowed the Trump administration to impose aluminum and steel tariffs.
The federal government has agreed to significant concessions on dairy, eggs and poultry, and agreed to eradicate Canada's Class 7 and Class 6 milk pricing systems.
The remaining work on the deal will follow a structured framework.
Canada, the United States' No. 2 trading partner, was left out when the US and Mexico reached an agreement last month.
U.S. Trade Representative Robert Lighthizer and White House adviser Jared Kushner have been updating Trump throughout Sunday on the talks, a U.S. source said. "There's no doubt about that". An end to supply management is overdue, for the sake of Canadian consumers.
The officials declined to say how large a share of the Canadian market would be open to USA dairy products.
In Ottawa, PMO officials say there will be another cabinet meeting Monday and a news conference likely as well. He said this will help manufacturing of the pharmaceutical sectors. But the howls from the industry are way out of proportion to the real impact: it still amounts to giving the Americans access to only 3.6 per cent of the Canadian market.
The new deal was greeted warily by unions and market watchers.
"At a minimum we haven't lost any ground".
"To me it seems like it's a stonewashed and ripped NAFTA, if you will, rather than a modernized agreement", Hugo Perezcano Díaz, a director at the Center for International Governance Innovation and a former trade official for the Mexican government, said. In addition, Canada will get rid of the "Class 7" pricing system that was seen as disadvantaging United States farmers.
"The markets are reacting positively and with relief but they're certainly not euphoric by any means". "If those sound like small numbers it's because they are", he said.
"With any trade agreement it's always give and take", Steve said.
Ruiter said he had heard similar promises of support after the TPP and European deals were signed, but has never seen any compensation himself.
Insiders got wind of a breakthrough after 14 months of tumultuous talks and just hours before USA and Mexican trade authorities were set to publish their own trade agreement without Canada as a signatory.