10/1/2018, 5:38 AM (Source: TeleTrader)
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US, Canada agree on new NAFTA deal

United States and Canada agreed on a framework for a new trilateral trade deal with Mexico, Canada's Minister of Foreign Affairs Chrystia Freeland said. The accord will replace the North American Free Trade Agreement (NAFTA) and will be called the United States-Mexico-Canada Agreement (USMCA). "USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region," the two sides said in a joint statement. Canadian Prime Minister Justin Trudeau saluted the news and said it is a "good day for Canada."

The new agreement should be signed by the leaders of the three countries by the end of November, after which it should be submitted to the respective lawmakers. The USMCA kept the dispute settlement clause from NAFTA, which was a point of contention for the US during the negotiations. It should also give American farmers access to Canada's dairy market "beyond Trans-Pacific Partnership levels" and keep the current tariffs on Canadian steel and aluminum in place for the time being. The deal also effectively limits Canadian car imports and introduces clauses on digital trade and intellectual property.

Breaking the News / DJ