Trump rewrites rules of trade with new deal

Trump rewrites rules of trade with new deal

USMCA is said by analysts to be similar to Nafta in many respects but there is improved access for United States agricultural goods, including the dairy products which Canada in particular had tried to limit.

With the final piece hammered out Sunday night, the United States-Mexico-Canada Agreement replaces the North American Free Trade Agreement, which has been around since 1995.

This clause could be used to prevent China from trying to circumvent the steep tariffs that the USA has slapped on Chinese imports by funneling its merchandise through either Canada or Mexico.

Wildeboer said the tentative USMCA deal has succeeded where other pacts have not in protecting the North American supply chain. Fortunately, many programs funded by the farm bill, including crop insurance, still have secure funding until the end of this year.

"The US in its trade deals has lost on average nearly $800 billion a year".

"The agricultural community is counting on our elected leaders to ensure that a safety net remains in place during these uncertain times. They may be willing to do that for political purposes", he said.

The inclusion of the clause surprised many trade experts, some of whom said it would impede Canada's trade aspirations with China.

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Foreign Affairs Minister Chrystia Freeland is defending Ottawa's new tentative trade pact after public criticisms from the Ford government over farmer compensation, future trade talks with other nations and steel tariffs. President Trump has long denounced NAFTA, so despite the fact the same countries are involved, the name, too, has changed.

In exchange, U.S. negotiators have agreed to retain Chapter 19, the dispute resolution mechanism of NAFTA, and exemptions for Canadian creative industries.

Canada originally pulled away from negotiations but reached an agreement leading up to a midnight deadline Sunday.

Automobile manufacturing: Under USMCA, to be free from tariffs, a larger part of a vehicle's parts will be made in North America. The issue for Canada dairy farmers is deeper than the NAFTA renegotiation, however. The US will also benefit from duty-free exports of particular types of cheese to Mexico.

As reported by Bloomberg, unnamed sources close to the talks reveal that the U.S. is "confident" that a deal will be reached between Canada, Mexico, and the USA before a US-imposed deadline of midnight Sunday. Both Republicans and Democrats in Congress, as well as business and trade unions, indicated they would be unlikely to support such a move.

One key difference: the USCMA would allow USA dairy farmers more access to the Canadian market, particularly with milk powder.

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