What's new in the US, Canada and Mexico trade deal?
- Author: Leroy Wright Oct 03, 2018,
Oct 03, 2018, 8:48
Dairy farmer Wayne Kramer has been in the industry for three decades, and he's optimistic about the deal about a tough last few years.
While that provision was an irritant for Lighthizer from the outset of negotiations, Freeland said her US counterpart "has come to appreciate its value for Canada and the value it brought to the larger trading relationship".
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. Under NAFTA, Canada was able to limit how much milk and dairy products could be brought in from the United States.
"New deal, with a new name, but aside from dairy access and some bells and whistles, hardly a major rewrite that warranted so much wasted time over a 13-month long period of negotiations", David Rosenberg, chief economist at Toronto-based Gluskin Sheff, said in a note sent out to clients. "Now I can say it", Trump said Monday to Tennessee television station WJHL. Later, he said he was "not at all confident of the outlook". "Congress is on the ticket".
That's 100 percent accurate, my sources told me.
"If you're on the list, its survival is very good news for you", said Eric Miller, a trade consultant who has worked for the Canadian government and continues to advise them on the negotiations.
The NAFTA dispute-resolution process will also be kept in the new deal.
"For us here in Hamilton we're sort of halfway there", he said.
Freeland also spoke about the challenges of both sides coming into the negotiation with red lines they were not prepared to cross. "Without tariffs, we wouldn't be talking about a deal".
NAFTA had a positive impact on the US economy.
Agriculture is a shared portfolio between the federal government and the provinces.
"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.
Alongside changes to the dairy market in Canada, officials said it includes stronger protections for workers, tough new environmental rules, and updates the trade relationship to cover the digital economy and provides "groundbreaking" intellectual property protections.
"We had a NAFTA deal that was working reasonably well so we will call it a win because we were able to retain the key parts of the existing NAFTA deal in terms of our access to the USA market". Vilsack was agriculture secretary in the Obama administration.
Open borders for digital commerce: Unlike the existing trade agreement, the new USMCA includes provisions on digital trade. Canada agreeing to grade imported wheat with the same requirements as Canadian wheat.
US and Canadian trade officials worked around the clock to bridge their differences and secure a deal before a Sunday midnight deadline.
While farm and export groups applauded the trilateral agreement, they also said they needed to review it in detail. "We look forward to further deepening our close economic ties when this new agreement enters into force". With what they buy from us, Canada is the biggest export market for 36 states.
Any hopes a new deal would lift the aluminum and steel tariffs the US imposed on Canada last spring were quickly dashed. But it keeps a NAFTA dispute-resolution process that the US wanted to jettison and offers Canada protection if Trump goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the United States. "We're working on that now".
Observers also suggested that the USMCA clause may be created to send a message to Beijing that the United States' North American partners support its push to get China to clean up its practices and open its markets.