What's in sweeping new NAFTA deal between US, Canada and Mexico

Canadian and US negotiators reached a deal late on Sunday on reforming the North American Free Trade Agreement after more than a year of talks

What's in sweeping new NAFTA deal between US, Canada and Mexico

The organization said the newly minted U.S. -Mexico-Canada Trade Agreement, or USMCA, will grant an expanded 3.6 percent market access to the domestic dairy market and eliminate competitive dairy classes, which the group says will shrink the Canadian industry.

Canada, Mexico, and the United States have officially reached a new trade agreement, which they are now calling the United States-Mexico-Canada Agreement (USMCA).

Canadian online shoppers will also be allowed to buy more stuff from the USA and get it shipped to Canada before hefty duties kick in. That would comply with a congressional notification requirement and allow Mexican President Enrique Peña Nieto to sign the deal on his last day in office, they said.

"It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our farmers and manufacturers, reduces trade barriers to the U.S. and will bring all three great nations together in competition with the rest of the world". "It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the almost half billion people who call North America home".

Other trading partners had been tough on the United States, he said, including the European Union, which introduced retaliatory tariffs on USA goods in June.

The text of the United States-Mexico-Canada Agreement is 1,809 pages long - about 100 more than NAFTA - and includes numerous tweaks from its predecessor, both big and small.

"We have really hurt relationships with our major ally ... for the sake of a few gallons of milk", Jeffrey Rosensweig, a business professor at Emory University, said on CNN. The United States and Canada will phase out the mechanism, while Mexico will keep it in place in sectors where the government plays a prominent role, such as energy.

In addition, the two countries agreed to shield Canada from automobile tariffs imposed by the U.S.

"Cars are made from steel and aluminum, and so the ecosystems that support them that are in Southwestern Ontario and across Canada can not thrive under these tariffs that we now have", she said.

The agreement first announced late Sunday, just before a midnight deadline, ended more than a year of tense negotiations sparked by Trump's decision to scrap the quarter-century old North American Free Trade Agreement. The investor-state dispute-settlement system, which allows investors to bring grievances against member-country governments, will be phased out for the U.S. and Canada, while certain industries such as energy will be able to bring cases against Mexico.

"This deal makes our partnership even stronger and benefits people across North America", Trudeau tweeted.

So much American trade depends on the 1994 deal that USA financial markets were jittery about a possible collapse of negotiations - and because Mr. Trump made campaign promises to get rid of NAFTA.

Trump said he would sign the final agreement in late November, in about 60 days, and the pact is expected to be signed by Canadian Prime Minister Justin Trudeau and outgoing Mexican President Enrique Pena Nieto before he leaves office December 1.

It was also "the biggest trade deal in the United States history", he told a press conference.

"With supply management, I can't exactly sell my milk internationally", Bos said.

Canada made some controversial concessions on dairy, opting to offer the Americans increased access to Canadian dairy, egg and poultry markets.

The quota would allow for significant growth in tariff-free automotive exports from Canada above current production levels of about 2 million units, safeguarding Canadian plants.

Trump's advisers view the trade pact as a political victor in Midwest battleground states critical to the president's 2016 victory and home to tens of thousands of auto workers and manufacturers who could benefit from the changes.

It said the measures will have "a dramatic impact not only for dairy farmers but for the whole sector".

The end of the trade war isn't the only good thing to come out of the new NAFTA agreement.

USMCA will open up some of Canada's dairy market to US farmers.

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