Donald Trump’s new NAFTA: A fact-checker’s guide to the trade deal

That gradually moves up to 40 per cent for cars by 2023.


The North American trade war is over!

But a greater reliance on North American-made inputs, which can be pricier than their foreign-made counterparts, may have the effect of raising prices on American consumers.

Canada has long held high tariffs on most dairy products, leading to higher prices than in the U.S., while Trump has argued that the U.S. industry should be able to sell more products to its northern neighbour. Canada has a complex milk and dairy system.

American dairy farmers get more access to the Canadian market. “There are several sticking points”, he added.

Negotiators from both sides spent two days talking by phone as they tried to settle a range of hard issues such as access to Canada’s dairy market and US tariffs. “Class 7 milk pricing in Canada caused problems for USA manufacturers in two different ways”, said Eric Meyer, the president of HighGround Dairy in Chicago.

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

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

It also appears to preserve the key dispute-resolution provisions – Chapter 19 – which allow for independent panels to resolve disputes involving companies and governments, as well as Chapter 20, the government-to-government dispute settlement mechanism. “We don’t like their representative very much”. Trump withdrew the United States from the pact on his third day in office.

Under US law, the White House is required to submit the text of the trade deal to Congress 60 days before signing – and officials barely made it by midnight. The steel and aluminum tariffs imposed by the US government as a “national security” measure earlier this year are still in place, and the text of the new NAFTA agreement doesn’t remove them. Only parts above that quota could face tariffs. That didn’t happen – yet.

Negotiations between Washington and Beijing remain deadlocked after the Trump administration followed through with another round of import taxes on Chinese goods last month, leading to retaliatory tariffs and the cancellation of high-level trade talks.

“We’re calling on the Trudeau Liberals to compensate our farmers, to support our steel and aluminum workers and our auto industry”.

The deal also upgrades environmental and labor regulations, meaning Mexican workers must have greater ability to unionize.

Dr. Andrew Solocha, professor of International Finance at the University of Toledo says, “If they impose a tariff on cars like Trump has proposed, that will mean they have to build their cars here”.

The new agreement includes stronger protections for patents and trademarks in areas such as biotech, financial services and domain names – all of which have advanced considerably over the past quarter century. The agreement drops this foreign portion to 25 percent.

Officials reached the US-Mexico-Canada Agreement after a year of negotiations Sunday. The idea was that if investors put a lot of money into a project and then the government changed the rules, then there was a clear dispute process – outside of the court system – where investors could get their problem resolved.


The president touted the new pact – the “U.S., Mexico, Canada agreement, called USMCA” – as keeping a campaign promise to renegotiate the North American Free Trade Agreement, which he had long described as perhaps the worst deal ever made.

Canada, US reach deal to update NAFTA - Canadian sources | New Hampshire