The United States and Canada have agreed to a deal to replace the 24-year-old North American Free Trade Agreement (NAFTA) by the USMCA — the United States-Mexico-Canada Agreement. In a recent agreement between the U.S. and Mexico in late August, 2018 to revamp NAFTA, Canada, which is the second largest trading partner of United States, was left out.
Donald J. Trump, the President of the United States, twitted, “We reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA”. He, added, “It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the U.S. and will bring all three Great Nations together in competition with the rest of the world. The USMCA is a historic transaction!”
U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland, said in a joint statement, “The agreement 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.”
According to the negotiations between American and Canadian officials, the deal will be offering more market access to U.S. dairy farmers, as well as Canada agreeing to an arrangement effectively capping automobile exports to the United States. It will also re-balance the trade relationship with Mexico and Canada, highlighting new rules on the origin of autos, and market access to Canada’s dairy sector. Further, the deal will also add provisions on digital trade and intellectual property.
The trade pact will be reviewed every six years for any changes needed.