Trade deal with Canada 'new dawn' for auto industry

Trade deal with Canada 'new dawn' for auto industry

President Donald Trump on Monday (Oct 1) hailed a U.S. trade pact with Canada and Mexico, which replaces the old NAFTA deal, as a historic agreement set to turn North America back into a "manufacturing powerhouse" and fuel USA economic expansion.

The US and Canada on Sunday sealed the deal on the US-Mexico-Canada Agreement, the first major update of the 25-year-old North American Free Trade Agreement.

"Late last night, our deadline, we reached a wonderful new trade deal with Canada, to be added into the deal already reached with Mexico", he said. That started a 90-day clock that would let outgoing Mexican President Enrique Pena Nieto sign the new pact before he leaves office December 1.

The rewrite "will result in freer markets, fairer trade and robust economic growth in..."

Democratic U.S. Senator Amy Klobuchar of Minnesota, a border state with Canada, also tweeted: "I'm glad MN's number one trading partner Canada is back in the mix".

It is the biggest-ever and the best trade deal in the world - that's how U.S. President Donald Trump and members of his administration are touting a new trade pact they have reached with neighbors Canada and Mexico. "Instead, it appears Canadian steel and aluminum workers are among those being sacrificed in the concessions made by the Liberal government in this deal", he said. We've all experienced duty being slapped on online orders from the USA, and when it happens it kills any deal, eliminating savings.

Bernstein, who is now a senior fellow at the liberal Center on Budget and Policy Priorities, said those new rules could help American workers by reducing the incentives for USA automakers to build new plants outside North America, and by reducing the wage differential between the United States and Mexico.

He said the agreement is one-sided in respect to the revised dairy import limit because Canadian farmers can't make dairy products low-cost enough to sell well in the US market.

Canadian, U.S. and Mexican politicians have been negotiating for months over what to keep, what to lose and what to compromise within the agreement, which oversees all trade relations between the three countries.

If NAFTA is indeed replaced by the new agreement, which unfortunately is completely unpronounceable as an acronym, it is unlikely that there will be large and dramatic changes to North American trade.

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Canadian Prime Minister, Justin Trudeau, speaks during a news conference at U.N. headquarters during the General Assembly of the United Nations in Manhattan, New York, U.S., September 26, 2018.

But the deal failed to resolve USA tariffs on Canada's steel and aluminium exports.

"I plan to sign the agreement by the end of November. Congratulations to Mexico and Canada!"

Trump also called out India for charging high tariffs on USA exports, specifically Harley-Davidson products.

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".

Companies and business groups, including the US Chamber of Commerce, have repeatedly called on Trump to ensure Canada remains part of the pact, which has become critical for industries across North America, including automakers, agriculture, and manufacturers.

"Today we are securing a higher standard of living far into the future for the people of Canada", Trudeau said during a news conference Monday in Ottawa.

"That will now make it very, very hard for us to meet all the market requirements for the Canadian market". In addition, Canada will get rid of the "Class 7" pricing system that was seen as disadvantaging United States farmers.

Foreign affairs minister Chrystia Freeland said Monday all farmers in supply management sectors will be compensated.

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