The US and Canada have reached a new trade deal, along with Mexico, to replace the current North American Free Trade Agreement (Nafta).
The hundreds of pages of the agreement were released in the early hours of Monday and contain updated arrangements for Canada’s dairy industry and measures aimed at shifting lower-paid car jobs from Mexico.
On dairy, US farmers will have access to 3.5% of Canada’s $16bn a year dairy market.
On cars, Canada and Mexico have a quota of 2.6 million cars they can export to the US as a protection for their car industry if the US imposes a 25% global tariff on car imports
In addition, 40% of car parts of vehicles produced in the USMCA area must be made in areas of North America, paying wages of $16 an hour
On the lumber (or wood) industry, Canada secured protection from US anti-dumping tariffs through the preservation of a dispute-settlement mechanism.
US President Donald Trump, who has long sought to change Nafta, said the new deal was “wonderful”.
Until recently it looked as if Canada could be excluded from a final trade agreement to replace Nafta which has been in place since 1994.
The new USMCA is intended to last 16 years and be reviewed every six years.
Following the agreement, Mr Trump tweeted that USMCA was a “great deal” for all three countries and solves the “deficiencies and mistakes” in Nafta.
Source https://www.bbc.com/news/business-45702609
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