Published: Sun, October 07, 2018
Markets | By Jeffery Armstrong

USA president cheers new USMCA trade deal, heralds end of NAFTA era

USA president cheers new USMCA trade deal, heralds end of NAFTA era

US officials, in recent weeks, had been adamant that the text for a new deal - whether it would only be with Mexico or also include Canada - to be released by September 30 to meet congressional notification requirements and to allow outgoing Mexican President Pena Nieto to be able to sign the deal before he is succeeded by Andres Manuel Lopez Obrador, a left-wing populist.

"We're thinking about just taxing cars coming in from Canada".

"This a victory for Canada because that amount is actually well above what we now send south of the border. We have survived the 14 roller coaster months of a very unpredictable president".

He said the new deal was "much more reciprocal" than Nafta, which he described as "perhaps the worst trade deal ever made".

It wasn't Freeland's hard-driving negotiating style that was under Trump's skin.

"I don't really like it", Weekes said of the new "non-market" clause.

"The deal is not a disaster", Bothwell said. "At that point, we saw everything that happened on Wednesday".

"The agreement will govern almost $1.2 trillion in trade, which makes it the biggest trade deal in the United States' history".

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Maris Ogg, president at Tower Bridge Advisors, said: "The market is happy because we're removing an uncertainty".

"So instead of it being the USA, it would be high-wage labour, which of course includes Canada, and suddenly the US and Canadian interests were aligned and this was a deal that Canada could do" Freeland said.

Canadian sources close to the talks say MacNaughton's easygoing style and political acumen - honed as co-chair of multiple provincial and federal Liberal election campaigns, and former Ontario premier Dalton McGuinty's principal secretary - proved invaluable.

US stocks ended mixed after the news that the US, Canada and Mexico have reached a new free trade deal to replace the North American Free Trade Agreement (NAFTA).

"The deadline is midnight tonight to get the text into Congress to make sure this goes forward".

The $1.2tn (£920bn) open-trade zone had been on the verge of collapse after 24 years - with Canada facing the prospect of being left out of a deal between the USA and Mexico.

But the ensuing talks to incorporate Canada stumbled.

Jerry Dias, head of labour union Unifor, said the deal's improved country-of-origin provisions and higher wage floors for Mexican factories put the domestic industry on a better footing for growth.

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"There was a lot of tension between he and I. It's all worked out".

"The current Section 232 tariffs are hurting USA aluminum companies, making them less competitive on the world stage", Brock says.

TRUMP, on overcoming the major hitch with Canada: "Dairy was a deal-breaker".

A deal seemed imminent, worrying those within the USTR who were convinced they weren't yet done, said the source. In the aftermath of a disastrous G-7 summit in Quebec in June, Trump called Trudeau "weak" and "dishonest".

During the 1992 presidential campaign, independent candidate Ross Perot famously predicted a "giant sucking sound" as NAFTA pulled US factory jobs into Mexico.

"We never believed it would be easy, and it wasn't", said Mr. Trudeau, who clashed frequently and in at times sharply personal tones with President Trump during the talks.

New chapters covering Digital Trade, Anticorruption, and Good Regulatory Practices, as well as a chapter devoted to ensuring that Small and Medium Sized Enterprises benefit from the Agreement.

"We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood", according to the group.

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