Donald Trumps heralds ‘new dawn’ with trade deal

NAFTA 1.0 wasn’t the awful deal President Trump said it was, but NAFTA 2.0 is an improvement and, more importantly, it tells us good things about Trump’s skill at deal making.

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Asked at a press conference in Ottawa Monday how much influence the clause would give the USA over potential free-trade negotiations between Canada and China, Prime Minister Justin Trudeau did not answer directly.

“We had to make compromises, and some were more hard than others”, he said.

A US official quoted by Reuters said the aim was for the agreement to be signed by the end of November before being submitted to the US Congress for approval.

Prime Minister Justin Trudeau said in a press conference that the auto sector was a key priority in negotiations. The deal must also be approved by each country’s legislature before it can come into force.

Not everyone was buying it. “We’re not getting along at all with their negotiators”.

NDP Leader Jagmeet Singh was also dismissive.

Canada is Ohio’s largest trading partner, and OH is a shipping point for many American goods exported to Canada.

One surprise area where there has been no change is that USA tariffs on Canadian and Mexican steel and aluminium will remain for now, even though this was seen as a key barrier to a deal.

“Supply management still exists”.

“This has happened, despite assurances that our government would not sign a bad deal for Canadians”, Pierre Lampron, president of Dairy Farmers Canada, said in the statement.

They described the central elements of the deal as a “template” that would become the “playbook” for all of the Trump administration’s future trade deals, including new and stronger rules of origin on autos and mechanisms to ensure agreements don’t become “stale and outdated”.

Aylard said US dairy farms are subsidized, making competition hard.

“These measures will support many – hundreds of thousands – American jobs”, Mr Trump said.

Trump and Trudeau did speak briefly about the agreement by phone Monday.

On Monday, Trump tweeted a congratulatory message to Mexico and Canada. He cautioned that “frequently, the devil is in the details”. “This new trade deal can not leave our farmers behind”.

“For the most part, this was a defensive deal for Canada”, he said in an interview.

Canada has agreed to provide US dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market.

But there are also some notable changes in the USMCA from the 25-year-old NAFTA, including increased dairy-market access, new auto rules, and a sunset clause.

There are also concerns that automakers might not make as many cars in North America to export to China and elsewhere overseas because costs would be higher in the USMCA region than making the vehicles in Asia.

Another element of the deal will exempt Mexican and Canadian cars from any future U.S. automotive tariffs up to certain import quotas. Canada now exports about 1.8 million vehicles.

“This a victory for Canada because that amount is actually well above what we now send south of the border. NAFTA has had many critics over the years and its flaws are well-known”, said Rep. Richard Neal, D-Mass. Chapter 11 gave companies and investors a special process to resolve disputes with one of the governments in NAFTA.

Pharmaceuticals will now be protected for 10 years before a generic drug can be made to replicate the medication.

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Canadian Prime Minister Justin Trudeau faces anger from dairy farmers but told journalists Monday that the deal overall would be “profoundly beneficial for our economy” and “the most important progressive reform for North American workers in a generation”. Previously, Canadians could only buy up to $20 worth of goods duty-free; now duties will only start after $150 worth of stuff is shipped.

Canada and US agree last-minute trade deal