President Trump touts 'historic' USMCA
- Author: Leroy Wright Oct 03, 2018,
Oct 03, 2018, 0:27
Dairy producers say the United States-Mexico-Canada Agreement, which increases American access to 3.59 per cent of the dairy market, deals another blow to the future of their industry. "We want them to help us with North Korea", he said, referring efforts to negotiate a deal to denuclearise the Korean peninsula.
Trump had set a deadline of Sunday to get Canada to agree to a deal, after the USA reached an earlier bilateral agreement with Mexico, with potential to exclude Canada from NAFTA. "Class 7 milk pricing in Canada caused problems for USA manufacturers in two different ways", said Eric Meyer, the president of HighGround Dairy in Chicago.
Will the United States-Mexico-Canada Agreement (USMCA) reverse the steady exodus of high-paying manufacturing jobs from the United States and Canada to Mexico as promised?
Were dairy farmers thrown under the bus?
Canada had previously offered the USA a 3.25-per-cent market share under the old Trans-Pacific Partnership agreement, which Trump also derided - and pulled the US from - after he took office in 2017.
If Democrats regain control of one or both chambers, it could make passage more hard due to political pressure to oppose Trump, even as some Democratic lawmakers have found themselves in agreement with the administration's approach to a number of trade issues throughout the 13-month negotiation.
In exchange, the US will offer additional access to dairy, peanuts, processed peanut products, and a limited amount of sugar and sugar-containing products from Canada, said the USA trade representative's office.
He plans to sign the deal next month before sending it to Congress for approval.
Trump administration officials say there is not a timeline for removing the steel and aluminum tariffs, and that the question will have to be addressed separately from the new agreement. Later, he said he was "not at all confident of the outlook". 20, said he's also hopeful, but he'll withhold judgment until after he reads what's in the agreement. "Congress is on the ticket. To me, it's the most important word in trade".
Canada has long held high tariffs on most dairy products, leading to higher prices than in the United States, while Trump has argued that the U.S. industry should be able to sell more products to its northern neighbour.
The NAFTA negotiation follows a familiar pattern Trump has relied on to claim victory on other trade issues and in discussions with North Korea over the country's nuclear weapons program.
"We got the right deal". No trade war should be taken lightly, but if America is to fight one, it is better to not fight USA allies at the same time. He covers USA politics and current affairs.
The new agreement ends the discriminatory pricing and restricts Canadian exports of dairy powders.
Polls show that Trudeau is still personally popular in Quebec and that the Liberals easily would win a federal election if one were held now.
The change makes USA products more competitive in Canada because they will be subject to less tax at the border - and delivers savings to Canadians who shop online.
The Canadian supply management system provides quotas for the amount of milk each dairy farmer can produce, limiting overproduction in Canada that can lead to lower prices. Vilsack was agriculture secretary in the Obama administration.
"Farmers should understand that nothing has changed yet, but we are pleased to see ..."
Canada agreed to terms Sunday night. "And they see that we can actually make very smart, clever deals and get partners together and come up with a path forward that opens up our markets to each other and closes the back door into the U.S".
An agreement with Canada needed to be reached.
Moreover, the proposed USMCA sets actual limits on how much Mexican vehicle exports can grow (up to 2.6 million units) and similarly poses a US$108 billion threshold for auto parts from Mexico.
But steel and aluminum tariffs remain. "We're working on that now". It means, more than anything else, far more American jobs.