President Trump announces new trade deal with Mexico, Canada

Andrew Cummings
October 4, 2018

President Trump formally announced a new trade deal with Mexico and Canada Monday morning.

Canada had opposed USA demands to weaken or eliminate NAFTA'S dispute resolution mechanism, whose arbitration panels Ottawa used to resolve trade conflicts, and to defend against United States anti-dumping and countervailing duties, notably against its important lumber industry.

The quota would allow for significant growth in tariff-free automotive exports from Canada above current production levels of about 2 million units, safeguarding Canadian plants.

President Donald Trump reportedly accepted the new deal while Canadian Prime Minister Justin Trudeau held a late-night meeting with his Cabinet in Ottawa.

In its latest Global Economic Outlook, Fitch said that trade tensions, particularly with regard to the USA and China, have begun to affect global growth forecasts. "I think this is very good for the North American auto parts sector". He's a professional, I'm a professional.

"That's gonna be a boon for the farmers in IN because the markets that were previously closed, especially Mexico, which had a very large number of tariffs preventing us from shipping our agricultural products especially poultry and pork, those are all gone now".

According to The Washington Post, the new deal requires that 75 percent of exempt from duty to be made in North America versus 62.5 percent under NAFTA.

"That's dealing with China, dealing with European Union, with everybody, Japan, Mexico, Canada, everybody", he said.

For we already knew that US President Donald Trump knows nothing about the actual details of America's trade agreements, and cares even less. No", Hill said. "We have to remember that OH is the single largest importer of goods that are targeted by Canada's retaliatory [tariffs] to the United States on steel and aluminum. Thus the dairy market became a hard point in NAFTA negotiations, with Canada eventually conceding on the issue.

"The economic ties between the three countries are a major contributor to each country's financial success, and no state benefits more from the NAFTA relationship than Texas".

A US official quoted by Reuters said the aim was for the agreement to be signed by the end of November before being submitted to the US Congress for approval. Starting in 2020, USMCA will force auto manufacturers in North America to build vehicles with at least 75 per cent of their parts coming from within the continent to qualify for zero tariffs.

To qualify for zero tariffs a vehicle or truck must have 75 per cent of its components manufactured in Canada, Mexico or the United States, which is a boost from the current requirement of 62.5 per cent.

"We will be manufacturing many more cars and our companies won't be leaving the United States, firing their workers and building their cars elsewhere".

A senior USA administration official said the final rewrite is a "fantastic agreement" and he called it "a big win for the United States, Mexico and Canada".

"It's a big win for the American farmer just to help stabilize the market some and keep that trade open", said Newby. Some countries were granted exemptions, however Mexico and Canada did not make that list.

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