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

Trade deal's new name has Trump written all over it

Trade deal's new name has Trump written all over it

A senior U.S. administration official said the final rewrite is a "fantastic agreement" and he called it "a big win for the United States, Mexico and Canada". "The best outcome for both countries is to lift tariffs on both sides".

What's in the new deal?

Mexico and Canada will also get protections if the USA goes through with plans to impose tariffs on vehicles and auto parts.

In a joint statement, U.S. and Canadian trade representatives said the agreement "will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region".

Federal Finance Minister Bill Morneau says Canada's new trade deal will bring more economic stability, even as the government works to fairly compensate dairy farmers and deal with the dissatisfied steel and aluminum industry.

Dan Ujczo, a trade lawyer with Dickinson Wright, tells the Post, "the heavy lift is going to be getting a trade deal through the next Congress in 2019 as well as ratification by Mexico's new Congress and in Canada during federal election year".

The specific clause that sets up the veto is called Section 32.10, and it would apply to all three signatories to the trade deal once it's ratified.

A New York Times report explained last week that the revised trade deal features "few fundamental changes to the existing agreement", adding that analysts believe "the revised agreement includes few provisions that will appreciably change the trade balance between the two countries, which Mr. Trump has complained about".

How come NAFTA has been saved?

President Trump has repeatedly criticized Canada on social media for the Class 7 system, which applies to ultra-filtered milk, a high-protein product used in making cheese and yogurt. The US president has regularly called it a "disaster" for American workers and manufacturers.

Negotiators worked frantically ahead of a United States imposed midnight deadline to settle differences, with both sides making concessions to seal the deal.

What's been the reaction and what happens now?

Trudeau arrived at his office Sunday night but did not comment as he walked by reporters ahead of the unusual late meeting with his ministers.

She said the Wisconsin Farmers Union is also disappointed the new trade agreement leaves the door open for foreign businesses to challenge American law and doesn't require labeling of foreign-produced meats. It was an especially good deal for American farmers, because it eliminated Mexican agricultural tariffs. President Donald Trump and his counterparts in Canada and Mexico are expected to sign the USMCA by the end of next month.

Following the announcement, the Canadian dollar rose to its highest value since May against the United States dollar.

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