Carmakers relieved as US reaches trade deal with Canada

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The United States and Canada reached an eleventh-hour deal on Sunday to replace the North American Free Trade Agreement (NAFTA) and maintain a trilateral trade bloc with Mexico.

Dairy Farmers of Canada says the new deal will grant greater market access to the domestic dairy market and eliminate competitive dairy classes. "Today, I have kept that promise".

The deal, announced on September 30, is a reworking of the 1994 North American Free Trade Agreement, which underpins $1.2 trillion in trade between the three countries.

According to people briefed on the negotiations, Canada will ease protections on its dairy market and provide access that is similar to what the United States would have gained through the Trans-Pacific Partnership, a trade treaty that Trump withdrew from past year.

The Times reports that Canadian Prime Minister Justin Trudeau attended a Cabinet meeting at 10 p.m.in Ottawa to discuss the details of the deal, known as the United States-Mexico-Canada Agreement (USMCA) with senior White House adviser Jared Kushner and Robert E. Lighthizer, the presidents top negotiator. "NAFTA will be preserved, updated, modernized and stabilized".

Trudeau is up for reelection next year, and voters may look back on the year-long trade negotiations approvingly.

In typically bombastic language, the president used a press conference outside the White House to say the agreement was "truly historic news for our nation, and the world". Trump's advisers view the trade pact as a political victor in 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.

Access for other agricultural goods: Canada will give the USA more access to its chicken, turkey, and egg markets, and British Columbia will allow the sale of U.S. wines at its state-owned liquor stores.

With that in mind, Trump offering minor tweaks to NAFTA rather than ripping it up doesn't upset most interest groups.

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Trump took a much different tone at a press conference in NY last week when he claimed to have rebuffed a request to chat with Trudeau at the United Nations. "NAFTA is dead. We have USMCA". Automakers looking to avoid duties on vehicles imports will need to use a higher percentage of North American auto parts and pay workers more, a provision created to make USA labor more competitive.

The officials declined to say how large a share of the Canadian market would be open to US dairy products.

"Though markets were already anticipating an agreement, one source of worry will be swept away if a deal is made", Yukio Ishizuki, senior currency strategist at Daiwa Securities in Tokyo, said.

The NAFTA negotiation follows a familiar pattern Trump has relied on to claim victory on other trade issues and in discussions with North Korea over the country's nuclear weapons program.

"What the Americans were really demanding was access to our marketplace and wanting us to stop exporting", said Wiens. But, as with North Korea, the substance remains largely the same.

"Without tariffs, we wouldn't be talking about a deal", Trump said.

The chair of the Dairy Farmers of Manitoba and vice president of the Dairy Farmers of Canada, David Wiens, is disappointed with a new trade agreement between the United States, Mexico and Canada.

"I don't think any country would like someone to be in their critical trade negotiations that was not tough", she said. But the agreement will now push Canada's current copyright terms, which stood at 50 years past the author's life, to 70 years so that it can fall in line with USA protections.

Yet beyond reshaping the region's contours of competition, the accord should also allow healing to begin from the serious political damage done over the past two years by United States insults and criticisms of its two closest economic partners.

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