USA and Canada Strike a Deal to Save NAFTA

New NAFTA reinforces Mexico's economic stability: minister

USA and Canada Strike a Deal to Save NAFTA

Kudlow said that the USMCA - in addition to new trade talks with the European Union and Japan - gives the US a stronger hand to play in looming trade negotiations with China.

President Trump and Canadian Prime Minister Justin Trudeau shake hands during a meeting in the Oval Office in February.

"This agreement eliminates all agricultural tariffs, other than dairy, to Canada", said Will. Canada had agreed to provide United States dairy farmers access to about 3.5% of its approximately $16bn annual domestic dairy market, the sources said, adding that the Canadian government was prepared to offer compensation to dairy farmers hurt by the deal.

The deal comes after a week of intense negotiations between United States and Canadian officials working under a self-imposed deadline of Sunday night.

Canada and the USA reached a deadline deal on a new free trade pact that will include Mexico, the governments announced late on Sunday, after more than a year of talks to revamp a pact President Donald Trump had labelled a disaster. "The American farmer is good at what they do", said Newby. Thus the dairy market became a hard point in NAFTA negotiations, with Canada eventually conceding on the issue.

He said he wasn't sure if they would reach an agreement by Monday, but that he was cautiously optimistic. "Lots of progress, not there yet", he said. 'It's never done until it's done'.

The replacement to the longstanding NAFTA has been inspired by changes in each member state's economies, sectors, and relative outputs over the past 24 years, with USMCA hailed as an "agreement for the 21st Century" by US Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland.

Trump has approved the deal with Canada, a source familiar with the decision said.

In Trump's view, the new deal and promise of more around the world shows that he has kept his campaign promise of putting "America first".

The new agreement was reached before Sunday's midnight deadline and will incorporate the United States' trade deal with Mexico that was reached in August.

Canada wanted the U.S.to drop the tariff - along with a 10 percent import tax on another construction-relate material, aluminum - as part of the new deal.

Earlier this month, Trump went as far as saying he could cause the "ruination" of Canada if he applied a 20% tariff on Canadian automotive exports.

"We have governments that have come together on an agreement and actually helped the North American supply base as opposed to [having] sold us down the river like previous agreements have done", he said.

"We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood", Pierre Lampron, president of Dairy Farmers of Canada, said in a statement.

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