The proposed new agreement, replacing the North American Free Trade agreement, covers the same three countries.
President Donald Trumpsaid a new trade deal with Canada and Mexico would bring thousands of jobs back to North America in a "new dawn" for USA factory workers.
The official says the agreement preserves a NAFTA dispute-resolution process that the US wanted to jettison.
"The number one thing ... we want to make sure we do now is work with our farmers, with the stakeholders ... to get the federal government to stand up for the cost of what's been negotiated in the trade agreement", Ontario Agriculture Minister Ernie Hardeman told iPolitics.
"The deal is far from ideal, but other, decidedly more negative potential outcomes - such as Canada's exclusion from a revised agreement, a "zombie" NAFTA, and steep tariffs on Canadian auto exports to the US - have likely been avoided", he wrote in an analysis Monday. "These measures will support many - hundreds of thousands - American jobs", Trump said in remarks at the White House.
While many economists think these new rules will help some North American workers, they also warn that some small cars might no longer be made in North American since they would be too expensive under the new requirements.
One thing the USMCA hasn't changed is the ongoing USA tariffs on steel and aluminum; the Trump administration says those aren't going anywhere for the time being.
Trump described the new agreement as fair to all sides and puts the United States in a position of strength that its never been in before. NAFTA 2.0 preserves most of the original treaty, including low tariffs.
The U.S. -Mexico-Canada Agreement (USMCA) was struck on Sunday night. Here's a rundown of the new NAFTA, which Trump has nicknamed the USMCA.
That being said, the tariffs are still in place for the near future.
"Today we are securing a higher standard of living far into the future for the people of Canada", Trudeau said during a news conference Monday in Ottawa. The agreement carves out quotas for both nations to export vehicles and parts to the USA duty-free.
Lawmakers were concerned that a bilateral deal with Mexico would not only disrupt supply chains and widely harm American businesses and consumers, but also that it may not have complied with Trade Promotion Authority. As a result, more American milk, butter, cheese and other dairy products will flow into Canada duty-free, with reciprocal treatment for Canadian dairy exports to the U.S. It also offers Mexico and Canada partial protection from broader auto tariffs the Trump administration has threatened to impose, but falls short of marking those countries exempt.
After the signing, the deal will have to be approved by Congress. Canadian, U.S. and Mexican politicians have been negotiating for months over what to keep, what to lose and what to compromise within the agreement, which oversees all trade relations between the three countries. He says that while he's optimistic the United States-Mexico-Canada Agreement will create opportunities, he's anxious about the impact on Ontario's agriculture sector.
The end of the trade war isn't the only good thing to come out of the new NAFTA agreement. "It is modernizing what was NAFTA and we have an even stronger agreement now".
"In short, we think this is a fantastic agreement for the USA, but also for Canada and Mexico", said the American officials, who cheered the fact that USA dairy ranchers would soon have "substantial" expanded access to lucrative markets north of the border.
"We got the right deal". The Canadian news site iPolitics said the changes in dairy access may need approval from Canadian provinces.
Canada wanted Trump to stop his 25 per cent tariffs on Canadian steel.
Trump said he would sign the final agreement in late November, in about 60 days, and the pact is expected to be signed by Canadian Prime Minister Justin Trudeau and outgoing Mexican President Enrique Pena Nieto before he leaves office December 1.