Published: Thu, October 04, 2018
Business | By Eloise Houston

Trade deal with Canada 'new dawn' for auto industry

Trade deal with Canada 'new dawn' for auto industry

Canadian dairy farmers have panned the renegotiated trade pact between Canada, the us and Mexico, saying the new deal will undercut the industry by limiting exports and opening up the market to more American products.

Meanwhile, buoyed by a strong USA economy, Trump may keep tariffs on Chinese goods over the long term so the trade war becomes a "new normal", in which U.S. firms buy products from other exporters, Miller told Al Jazeera.

"It's not Nafta redone, it's a brand-new deal", President Trump told reporters at the White House on Monday. The FTSE 100, which closed at 7,510.20 on Friday, is forecast to open 4 points lower when trading begins.

He was responding to questions about a section in the new United States-Mexico-Canada Agreement (USMCA) that lays out a set of obligations for any of the USMCA partners seeking a bilateral free-trade agreement with a "non-market economy".

Ratifying the deal is likely to stretch into 2019 because once Trump and the leaders from Canada and Mexico sign the agreement, the administration and congressional leaders will need to write legislation to implement the deal and win passage in Congress.

"There has been a lot of twitchiness that Canada might negotiate with China", said trade-policy veteran Robert Wolfe, a professor at Queen's University.

The main goal of the agreement for the United States is to have more vehicle and truck parts made in North America.

A Canadian official told The Associated Press that the agreement preserves a NAFTA dispute-resolution process that the USA wanted to jettison.

And he cheered the fact it will give American farmers and dairy producers greater access to markets in Canada and Mexico, protect auto manufacturing jobs and encourage innovation on USA soil. "I said frankly it's too early to talk, because they're not ready..."

Canadian Prime Minister Justin Trudeau said his country was in a more stable place now that it had completed the negotiations. According to reports, the USA and Canada agreed to a framework on an updated treaty.

Freeland was seen wearing that same shirt on Sunday in Ottawa, before a deal was reached.

"We are associating ourselves with countries that promote market freedom and that promote free trade in the world, free trade under equal circumstances", said Juan Pablo Castañon, head of the Consejo Coordinador Empresarial (CCE), which represented Mexico's private sector during the NAFTA trade talks.

But Heyman said Trump's attacks against America's closet ally will cause lingering damage to the relationship.

The deal will preserve a trade dispute mechanism that Canada fought hard to maintain, to protect its lumber industry and other sectors from United States anti-dumping tariffs.

However, a few issues like U.S. tariffs on steel amd aluminum imports, along with retaliatory tariffs were left out of the USMCA deal.

Bruno Letendre, head of the Quebec milk producers association, said Monday the agreement is a bad one for the Canadian industry. But chamber president Perrin Beatty said the details of the text needed a closer look before a final verdict could be rendered.

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