Donald Trump Celebrates 'Historic' USMCA Deal Replacing NAFTA

Adjust Comment Print

"It sure seems that the Americans and Donald Trump are more interested in looking after agriculture in their industry than the Canadian government is looking after, particularly the dairy industry in Canada", said Haasen.

Mr. Lloyd said the challenge with calculating lost farm revenue is the USMCA hurts farmers in two ways: It limits dairy exports in addition to allowing in more USA dairy products.

For more on this and other news around the world we turn to our Ro Aram...

Taylor said the deal, dubbed the United States-Mexico-Canada Agreement (USMCA), is frustrating. But NAFTA encouraged factories to move to Mexico to take advantage of low-wage labour.

THE FACTS: North America already is a manufacturing powerhouse.

But America had to make some concessions, too.

The new deal also imposes unprecedented export controls and ends a dairy ingredient pricing system that was helping dairy processors compete without using cheap American imports. "There's no China deal that's worth losing a ratified USMCA", Scissors added.

The proposed new agreement, replacing the North American Free Trade agreement, covers the same three countries.

Mr Terry Haines, head of political analysis for Evercore ISI, said in a note to clients on Monday that his base case is that the U.S. and China will not strike an agreement until 2019 at the earliest. But here's an early look at what it means for different players.

What they're going to ship into Canada is either some finished dairy products or they're going to ship in refined milk mostly.

From the moment Dave Taylor learned about the trade deal Canada had struck with the US and Mexico, the Courtenay dairy farmer became upset. "Now, the new agreement is to close those holes".

It also expands U.S. access to up to 3.75 per cent of the Canadian dairy market versus 3.25 per cent in the Trans-Pacific Partnership agreement the Obama administration negotiated but the Trump administration nixed his first week in office.

- Aiding farmers by curbing Canada's high tariffs and low quotas on USA dairy products. It also promised to fully compensate farmers for any losses they might incur.

"We are helping our manufacturing workers, blue-collar workers, [and] we broke through on dairy. wheat and some other grains", Kudlow said. It also appears that market and institutional uncertainty over NAFTA should now be over with . Automakers built complicated supply chains that straddled NAFTA borders. "Our companies won't be leaving the United States, firing their workers and building their cars elsewhere".

"A lot of Trump's base will be affected by rising prices for washing machines, new cars and other basic things that will be impacted by tariffs", Kurtzer, a former USA ambassador to Egypt and Israel, told Al Jazeera. The new agreement requires that 75 percent of the parts for automobiles be made in either of the three countries. Democratic members had made labor provisions more beneficial to US workers a requirement to win their support - and Trump's trade point man says that was delivered.

The provisions could drive up auto prices for consumers.

Canada and Mexico will not have to sweat it, though.

Trump has approved the deal with Canada, a source familiar with the decision said.

Auto sector: Canada has agreed to a maximum number of vehicles that can be produced in Canada (2.6 million) and be exported to the United States without duty.

The new pact scales back provisions protecting foreign investment.

For me, anything above 1.2850 is a good spot to sell because the pair's likely to fall further if a deal gets done. According to The Washington Post, the provisions are expected to apply from 2020, after leaders from the countries sign it and respective legislatures give their approval. So all of a sudden up to 10 per cent of our market is gone.

But good news for the pharmaceutical industry could be bad news for users of the drugs and for government policymakers trying to hold down health-care costs.

As for retailers, some will benefit and some will not. The US can terminate its pact with Mexico or Canada if either of them strikes a deal with a non-market economy. China's other state media outlets all avoided analysing the possible impact of the deal on China.