After intense last-minute discussions ahead of a self-imposed midnight deadline, U.S. and Canadian officials announced late Sunday they reached a trade deal, allowing a modified three-way pact with Mexico to replace the nearly quarter-century old North American Free Trade Agreement.
The U.S.-Mexico-Canada Agreement (USMCA) — underpinning $1.2 trillion in annual trade — is expected to be signed in 60 days by President Donald Trump and his Canadian and Mexican counterparts.
Trump hailed the "wonderful new Trade Deal" on Monday and calling it a "great deal for all three countries" that "solves the many deficiencies and mistakes in NAFTA."
“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,” said U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland in a joint statement. “It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”
The U.S. agreement with Ottawa will boost American access to Canada's dairy market — with some concessions on its heavily protected supply management system — while shielding the Canadians from possible U.S. auto tariffs.
Steel and aluminum tariffs imposed by Washington, will remain, however. Canada had demanded protection from Trump's tariffs on imported steel and aluminum.
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