Japanese Nikkei hits 27-year high as markets cheer Nafta deal

The USMCA deal has a lot in common with its predecessor, NAFTA, but includes a few key changes.

Advertisement

And if the president insists on imposing higher tariffs on foreign made cars, watch Asian and European vehicle makers. “And frankly we’re thinking about just taxing cars coming in from Canada, that’s the mother load, that’s the big one”.

“Likewise, it will be the most advanced trade deal in the world, with ambitious provisions, on the digital economy, patents, financial services and other areas where the United States has a strong competitive advantage”, he said.

“That mans people suffering from chronic illnesses, like rheumatoid arthritis, Crohn’s Disease will see an increase in the cost of medication”. The agreement must be approved by each country’s legislature, which is expected to happen, and it will go into force in 2020.

At every slump in the talks, which began formally in August a year ago, multiple players helped stabilize the situation.

WATCH: Is Canada’s supply management system the cause of disappearing dairy farms in U.S.?

Under NAFTA, Xie explained, many Mexican products sold in the USA market were the result of packaging cheap components imported from elsewhere, such as China. The rush was due in part to current Mexican President Enrique Pena Nieto’s imminent departure: the United States and Mexican governments hoped to sign the agreement before Nieto leaves office at the end of November. Canada’s Financial Post suggested that the USA negotiators’ willingness to keep the chapter-19 dispute resolution mechanism intact was a win for Ottawa.

But he said he’ll need more information to determine if it will have a tangible impact on overall demand and prices, noting the lack of reaction this week from the US milk market. That sovereign right has now been given to Washington: If the United States determines that China is a non-market economy, it is a non-market economy.

Trump has also called NAFTA the “worst trade deal in history”.

Trump said on Monday that “dairy was a deal breaker” during renegotiation discussions, particularly the stipulation that Canada eliminate a program that allowed it to undersell US products domestically and in other markets.

Other countries aren’t as lucky when exporting to Canada and Mexico. When non-Americans export to Mexico, agricultural tariffs average 20.1 percent, and non-agricultural ones average 3.5 percent.

“Unto themselves, the Canadian consumer will not be the solution for USA dairy supply or over-supply”. They also had to figure out the bottom-line trade-offs in contentious issues such as dairy and anti-dumping, and, with their US counterparts, craft a deal that was acceptable to the White House and durable enough to pass muster with both Republicans and Democrats in Congress. The new USMCA trade deal between the U.S., Canada, and Mexico prevents any of these nations from establishing a free trade pact with China.

US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said in a joint statement that the new pact will result in “freer markets, fairer trade and robust economic growth in our region”.

Advertisement

Dairy groups in Washington state are encouraged by the Trump administration’s new North American trade deal announced Monday and what they see as its potential to create additional market access for dairy farmers.

Dairy cows in Surrey B.C. THE CANADIAN PRESS  Darryl Dyck