Deal returns US to 'manufacturing powerhouse'

Deal returns US to 'manufacturing powerhouse'

Deal returns US to 'manufacturing powerhouse'

The United States and Canada forged a last-gasp deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, rescuing a three-country, $1.2-trillion open-trade zone that had been about to collapse after almost a quarter century.

Compared to the widespread news and analysis of the deal in North America - with US President Donald Trump tweeting that the deal was a "historic transition" from the past and "a great deal for all three countries" - China has kept domestic media coverage and public discussion of the USMCA to a minimum. When told that he seemed confident of congressional approval after his announcement, he said he was "not at all confident" - but not because of the deal's merits or defects.

"We urge Congress to approve the USMCA", said API president and CEO Mike Sommers.

The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from USA anti-dumping tariffs, United States and Canadian officials said. Luis Videgaray, the outgoing Mexican foreign minister, delayed a weekend trip to Spain to help Telford and Kushner broker a deal, one person familiar with talks said.

"What was lost along the way here", Wood said, "was political good will on the part of Mexico and Canada. We got a win-win-win for all three countries", Trudeau said.

If Canada insists on negotiating a FTA with China, the United States will have the final say on whether it can proceed.

In fact, the USA has always been a manufacturing powerhouse and by some projections - before the current deal - expected to be No. 1 in 2020.

"The appropriate measure, in our view, is whether USMCA (United States-Mexico-Canada) is better than NAFTA, which has transformed North America into one of the world's most competitive and successful trading blocs", the company said. It replaces NAFTA, which Trump has lambasted as a job-wrecking disaster that has hollowed out the nation's industrialized base. "When this improved agreement is implemented, North American trade will be preserved and modernized for the 21st century, just as we set out to do". "Retaining a trade agreement for North America will help ensure the US energy revolution continues into the future". Trump had repeatedly called NAFTA a awful deal for the United States. President Obama and other Democrats said manufacturing jobs were never coming back to America.

Before Trump took office, Canada was already making moves towards China. It was unclear, however, whether Trump had authority from Congress to pursue a revamped NAFTA with only Mexico.

"The agreement will govern almost one point two trillion in trade which makes it the biggest trade deal in the United States history...." Aside from new quotas on American ice cream, there will also be increases in access for American poultry and eggs, in exchange for greater access south for Canadian peanuts and sugar.

The $1.2 trillion USMCA is expected to be signed by North American leaders next month. I look forward to connecting with you all over Facebook, Twitter, or LinkedIn to hear what all the trade news may mean for you and your businesses.

Dairy farmers have confronted tariffs of up to 270 percent on fluid milk exported to Canada as well as restrictions on other dairy products in recent years.

But the president said his administration had not yet agreed to lift tariffs on steel and aluminum imports from Canada, a contentious issue between the two neighbors.

"For Beijing, this is all just one more piece of Trump's anti-China strategy", said Alan Chong, a professor of worldwide relations at the S. Rajaratnam School of global Studies in Singapore. "India charges tariffs of 100 percent", Trump said. Uncertainty over the fate of NAFTA talks had threatened to batter Mexico's currency and economic outlook.

In a news conference Monday, she said the non-market clause doesn't matter, because any country can walk away from the USMCA at any time with six months' notice, according to Maclean's. He said, however, that some of the new regulations may pose challenges for companies to adapt to. The biggest trade shift was in the regional content requirements for automobiles, which would be slated to rise from 62.5 to 75 percent by 2020.

However, the NDP said while auto tariffs are off the table, the Liberals have failed to get any assurance that the USA will lift aluminum and steel tariffs that impact the auto sector more than any other. In August, U.S. representatives agreed to terms on a new deal with Mexico.

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