The Toronto Star: It’s time to end the charade and walk away from NAFTA; A deal is reached

[ccc]

 

[ccc]

 

[ccc]

(CNN)Canada has agreed to sign on to a trade deal between US and Mexico, preserving the three-country North American Free Trade Agreement after more than a year of tortuous negotiations, a US official and a Canadian official told CNN late Sunday.
The US and Canadian governments agreed to a deal that would allow greater access to Canada's dairy market and address concerns about potential auto tariffs just hours before a self-imposed midnight deadline, the officials said.

Further details are expected before midnight.

Negotiators from all three countries spent all weekend working over the phone, hoping to keep the trilateral deal intact.

Earlier in the evening, President Donald Trump was briefed on the nearly finalized negotiations by US Ambassador Robert Lighthizer and White House adviser Jared Kushner.

The new treaty is expected to be signed by Trump and his Mexican and Canadian counterparts. Congress will then have 60 days to review and approve the new deal.

Ahead of the weekend's talks, several lawmakers had warned that they would not support a deal without Canada.

"It would be a monumental mistake to do this without Canada," US Senator Ron Wyden of Oregon, the top Democrat on the Senate committee that oversees trade, said Friday, before the text was delivered. "It's basically surrendering on fixing NAFTA."

The Trump administration has been working to sign a new trade deal before Mexican President Enrique Peña Nieto leaves office on December 1. To meet that deadline, the text of the agreement had to be submitted to Congress before October.

Negotiators from the three countries began talks about updating NAFTA more than a year ago. Trump had campaigned on ripping up the trade pact, calling it "the worst deal maybe ever signed."

In August, the United States and Mexico resolved an issue over auto manufacturing, but several sticking points with Canada remained. Trump wanted Canada to open its dairy market to US farmers, and Canada wanted to preserve a mechanism for resolving disputes.

Canada and Mexico are two of the biggest trading partners with the United States. A deal that leaves one of them out could cause chaos for businesses that rely on imports.

The US Chamber of Commerce has said it would be "unacceptable to sideline Canada, our largest export market in the world." Vehicles, machinery, and agricultural products make up much of the goods traded.

Katie Lobosco contributed to this report.

 

[ccc]

 

[ccc]

等着看看特朗普总统如何吹这个USMCA。

 

[ccc]

The new trade deal Canada has agreed to with the U.S. and Mexico is being applauded for measures that will protect jobs and preserve cultural industries, but panned for concessions that could harm the dairy sector.

U.S. President Donald Trump will respond to the agreement at a news conference in Washington at 11 a.m. ET. CBCNews.ca will carry his remarks live.

Calling it a "great day for Canadians," the head of the country's largest private sector union said the new United States-Mexico-Canada Agreement (USMCA) will stem the flow of jobs to Mexico, protect cultural identity and preserve a formal process to settle trade disputes.

Jerry Dias, national president of Unifor, conceded the deal isn't good for dairy, but said overall the USMCA will yield benefits for Canadian workers and the economy.

"There are some incredible victories in this deal; things we've been arguing and fighting for for the last 24 years," he said.

Dias said another downside to the deal is a change to intellectual property rules that will extend the patent on biologic drugs to 10 years from eight. But he expects a national pharmacare plan will buffer Canadians from escalating medical costs.

"Am I comfortable? The answer is yes. Is it a perfect deal? The answer is no. But are we better off today than we have been over the last 24 years? I'll say emphatically the answer is yes," he said.

Steel tariffs intact
Dias is pleased the deal fends off the threat from U.S. President Donald Trump to slap 25 per cent tariffs on Canadian automobiles. While the reformulated deal does not lift the existing tariffs on steel and aluminum, Dias believes it's better to find a permanent solution through the dispute process rather than having a quota that could lead to a "generational" problem.

Unifor national president Jerry Dias says the USMCA is a good deal for Canadian workers. (CBC)

Jean Simard, president of the Aluminum Association of Canada, was let down that the tariffs weren't addressed in the new deal.

"We are certainly glad to see that the three countries have reached an agreement. We are very disappointed that section 232 (tariffs on national security grounds) on aluminum and steel have not been dealt with, and we are strongly urging Minister Freeland and Prime Minister Trudeau, who has spent lots of time in our plants recently, to remember our thousands of workers and ensure that Canada's world class aluminum industry can grow free of tariffs and quota."

Impact on dairy sector
Ontario Premier Doug Ford expressed concern about the impact of the deal on his province's agriculture sector.

"While I'm optimistic that the USMCA announced today will create continued opportunities, I remain concerned about the impact of Canada's reported concessions on Class 7 milk and access to Ontario's dairy market could have on our agriculture sector. We also remain concerned about the remaining steel and aluminum tariffs," he said.

"Our government will be speaking directly with industry representatives from Ontario's steel, aluminum, auto and agriculture sectors to determine the impacts of this deal."

The Dairy Farmers of Canada (DFC) said they have paid the price to conclude the trade agreement.

"The announced concessions on dairy in the new USMCA deal demonstrates once again that the Canadian government is willing to sacrifice our domestic dairy production when it comes time to make a deal," said DFC president Pierre Lampron in a statement.

"The government has said repeatedly that it values a strong and vibrant dairy sector — they have once again put that in jeopardy by giving away more concessions."

Dennis Darby, president of Canadian Manufacturers and Exporters, called the agreement a "significant step" that preserves integrated manufacturing supply chains and will help create certainty for business.

"The manufacturing sector is the cornerstone of the North American economic relationship and the reason this trade agreement is so critical," he said in a statement.

"We worked closely with the government throughout the negotiation to ensure the integrated manufacturing sector would remain unharmed and strengthened where possible. We believe the USMCA has accomplished this objective."

 

[ccc]

Prime Minister Justin Trudeau and Minister of Foreign Affairs Chrystia Freeland walk to a press conference on the USMCA trade deal on Parliament Hill in Ottawa on Oct. 1. (Justin Tang / THE CANADIAN PRESS)

The accord makes modest revisions to a trade deal Trump once called a “disaster,” easing uncertainty for companies reliant on tariff-free commerce among the three countries.

U.S. and Canadian negotiators worked around the clock this weekend to secure an agreement just before a Sunday midnight deadline, allowing leaders from those nations and Mexico to sign the pact by late November. The 24-year-old NAFTA will now be superseded by the U.S.-Mexico-Canada Agreement, or USMCA, covering a region that trades more than $1 trillion annually (U.S.).

Canadian Prime Minister Justin Trudeau called it a “good day for Canada & our closest trading partners” in a tweet. Jesus Seade, the Nafta negotiator for Mexican President-elect Andres Manuel López Obrador, said “Nafta 2 will give certainty and stability to trade.”

 

[ccc]

The new deal, formally called the United States-Mexico-Canada Agreement, came together in the final hours before the deadline for Canada to come on board a renegotiated trilateral deal. Otherwise, Mexico and the U.S. were poised to push ahead without them on a bilateral agreement. It will replace the North American Free Trade Agreement once fully ratified.

The pair spent the morning briefing Canada’s premiers about the details of the deal which are still emerging after the announcement late Sunday night. The new agreement will have an impact across industries and regions of the country.

On Sunday, all three countries were heralding the agreement as a win-win-win, though reaction is pouring in from various industries and stakeholder groups, who have a mixed reaction to the news of a new agreement after nearly 14 months.

Trudeau touted it as a good deal for the Canadian economy, businesses, and families.

The prime minister is set to hold another cabinet meeting this afternoon. This will be the second cabinet meeting in less than 24 hours after Sunday night’s 10 p.m. gathering of the federal ministers when news began to break of a new deal on the table.

Trump trumpets fair deal

U.S. President Donald Trump, who triggered the NAFTA renegotiations, heralded the new USMCA as “a wonderful new trade deal.”

“Late last night, our deadline, 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. It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA,” Trump tweeted.

Speaking with reporters at the White House Rose Garden on Monday, Trump touted the benefits of the new agreement, as several high-profile members of his administration including U.S. Ambassador to Canada Kelly Craft and U.S. Trade Representative Robert Lighthizer clapped behind him.

Trump also referenced the drama that was laced throughout the negotiations, including what he called the “difficulty” between himself and Trudeau. At one point in the talks Trump called Trudeau “very dishonest and weak,” though now Trump seems hopeful the relationship is on the mend.

“The only problem with Justin is he loves his people and you know he’s fighting hard for his people,” Trump said. “This is good for everybody.”

The U.S. president called it the most important trade deal his administration has signed, and expressed satisfaction that the pact is a fair one. He also stated that if Canada did not open up its dairy market, it would have been a “deal breaker.”

Lighthizer also spoke, and thanked by name Freeland, as well as other senior officials including Trudeau’s top two aides: Gerald Butts and Katie Telford.

Monday morning, Trudeau spoke with both Trump and Mexican President Pena Nieto.

In both talks — according to the PMO readouts — Trudeau and his North American counterparts welcomed the deal, and stressed how the deal will bring the countries closer together and enhance North American competitiveness.

Trudeau described the call with Trump as “very positive.”

The leaders of all three countries are expected to convene before the end of November to sign the deal, which will allow the outgoing Nieto to sign the new agreement before his successor Andres Manuel Lopez Obrado takes office in December. It will then begin its winding journey through each country’s legislative body.

Political, stakeholder reaction

Both Conservative Leader Andrew Scheer and NDP Leader Jagmeet Singh will share their reaction to the news of the major new trade pact later this afternoon in Ottawa.

In a statement, Brian Mulroney, the former Canadian prime minister who signed the original NAFTA deal 25 years ago, said the agreement was “a highly significant achievement for Canada.”

Mulroney said that, while he has not yet had an opportunity to read the details, “Canada appears to have achieved most if not all of its important objectives in this lengthy and challenging set of negotiations.”

The key points of the new USMCA:

• The Chapter 19 dispute resolution mechanism remains intact, though, it has been renumbered in the new 34-chapter agreement. This part of the deal allows for independent panels to resolve trade disputes that arise out of the deal. It was a red line for Canada, which feared not having an objective arbiter, despite the U.S.’s push for changes.
• American farmers will have increased access to the supply-managed Canadian dairy market. Specifically, Canada has increased the market access to 3.59 per cent, and the federal government agreed to get rid of what was known as Class 7 pricing on some dairy ingredients. The Americans are viewing this as “a big win” for them. It’s a bigger concession than what Canada made in the Trans Pacific Partnership.
• Canada maintained the original NAFTA text related to an exemption for cultural industries, which is aimed at protecting such things as Canadian media and cultural content.
• Under the USMCA trade deal, online cross-border shipments to Canada worth less than $150 will no longer be subject to duties. The deal raises the raises the minimum purchase price that qualifies for duties and taxes, known as the de minimis threshold, up from $20 to $40.
• The deal includes 12 side letters on issues including wine, water, and cheese names. Eight were posted with the first full text of the deal Sunday night, and four others were published later, regarding the national security provision, aka Section 232.
• The deal includes stronger rules of origin for autos, and an “ambitious” slate of other provisions related to the digital age.
• It includes a termination provision aimed at preventing the deal from becoming outdated. It states that the deal is good for 16 years after it comes into force, but within the first six years a mandatory “joint review” will be conducted to determine whether all three countries want to extend the agreement for another 16 years. It maintains the six month opt-out of the deal notice that existed in NAFTA.
• The U.S. has given Canada assurance that an exemption — should Trump follow through on a 25 per cent tariff on autos — would be granted for 2.6 million vehicles and US$32.4 billion worth of auto parts.
• The exchange of steel and aluminum tariffs between Canada and the U.S. remain in place for now.

 

[ccc]

Prime Minister Justin Trudeau and U.S. President Donald Trump are both talking up the benefits of a new trilateral trade pact between Canada, the U.S. and Mexico, saying it will grow the middle class and boost all three countries' economies.

Trudeau said the successor to NAFTA — the United States-Mexico-Canada Agreement (USMCA) — will modernize and stabilize the economy for the 21st century, guaranteeing a higher standard of living for Canadians for the long term.

At a news conference in Ottawa, the prime minister said striking the deal was "no easy feat" and Canada got there by maintaining its focus and collective resolve. He defended Canada's concessions on the dairy sector, promising to address the "anxiety" with adequate compensation for affected farmers and to protect the supply management system.

Warning that the agreement must still be ratified by all three countries, Trudeau said the tentative deal means economic stability for the continent.

"Free and fair trade in North America, a trading zone that accounts for more than a quarter of the world's economy with seven per cent of its population, is in a much more stable place than it was yesterday," he said. "We now have a path forward."

Some highlights of the deal:

• A dispute resolution process (formerly Chapter 19 of NAFTA) remains in place.
• The U.S. gets access to 3.6 per cent of Canada's dairy market.
• Tariffs on steel (25 per cent) and aluminum (10 per cent) remain under Section 232 national security grounds.
• Auto tariff exemptions for 2.6 million Canadian autos exported to the U.S., far exceeding the current export rate of 1.8 million.
• Duty-free purchases through e-commerce jump to $150 from the current $20.

Trudeau and Trump spoke by phone earlier in the day, with the PMO issuing a statement extolling the benefits of the "new and modern trade agreement" reached last night.

"The prime minister and president stressed that the agreement would bring the countries closer together, create jobs and grow the middle class, enhance North American competitiveness and provide stability, predictability and prosperity to the region," the statement reads.

Prime Minister Justin Trudeau said under the new USMCA agreement, the auto industry and auto parts wi;; be protected from the 232 measures President Trump could move forward with. 0:40

The leaders agreed to keep in close touch to move the agreement forward. Trudeau also spoke with Mexican President Enrique Peña Nieto about the deal; both leaders said it will strengthen their countries' close partnership and create good, well-paying jobs.

During a news conference in Washington, Trump called the agreement "truly historic news" for the U.S. and the world, replacing the "worst trade deal ever made" (NAFTA) with one based on fairness and reciprocity that closes what he called "terrible loopholes."

Trump confirmed that hefty tariffs the U.S. imposed on steel and aluminum will remain intact until there is a new system in place, such as an import quota.

"We are not going to allow our steel industry to disappear," he said.

U.S. President Donald Trump shakes hands with United States Trade Representative Robert Lighthizer during a news conference to announce the USMCA in the Rose Garden of the White House on Monday. (Evan Vucci/Associated Press)

Trump said the agreement will transform North America back into a manufacturing powerhouse.

The president said he and Trudeau butted heads over several issues, but in the end agreed to a deal that benefits both countries, as well as Mexico.

'Terrific deal' for all
"This is a terrific deal for all of us," he said.

Trump also took time to praise Trudeau, despite what he called the "strong tensions" between the two leaders during the trade talks.

"He's a good man and he's done a good job, and he loves the people of Canada," he said.

Conservative Leader Andrew Scheer said he still wants to scrutinize the details of the deal, but argued today it appears to be worse than NAFTA.

He accused Trudeau of focusing on "politically correct posturing" and ultimately backing down to Trump's demands.

"I would have focused on economic issues. I would have focused on making sure that we saw an end to softwood lumber tariffs, and end to steel and aluminum tariffs," he said.

NDP Leader Jagmeet Singh said the deal fails to deliver on Liberal promises to make Indigenous rights, gender parity and the environment central to the modernized agreement. He also accused the government of betraying dairy producers and eroding supply management.

"The deal may have a new name, but we've signed a deal that's worse than the previous one," he said.

Foreign Affairs Minister Chrystia Freeland said negotiators will continue to fight to have the lingering tariffs on aluminum and steel lifted, insisting the integrated industry is "balanced and mutually beneficial." She said her team will build on the momentum and intensify discussions on the tariffs.

"We have a little bit of wind in our sails, and we are going to very much continue to work on this issue," she said. "But it is separate from the NAFTA talks."

Freeland highlighted the benefits of the agreement, including the fact it fends off auto tariffs Trump had threatened to impose. It also improves labour and environmental standards while protecting cultural industries, she said.

"This is a victory for all Canadians," she said.

Former Conservative prime minister Brian Mulroney issued a statement calling the agreement "a highly significant achievement for Canada" that will benefit all three countries.

"I have not yet had the opportunity to study the full text – and frequently the devil is in the details – but Canada appears to have achieved most if not all of its important objectives in this lengthy and challenging set of negotiations," he said.

"I said at the beginning that there is no Conservative or Liberal way to negotiate a free trade agreement — there is only a Canadian way. This has been the government's approach as well and I commend all — from the prime minister down — who contributed to writing this vital new chapter in the ongoing drive for greater Canadian strength and prosperity."

Ontario Conservative MP Pierre Poilievre asks Minister of Foreign Affairs Chrystia Freeland about the new US, Mexico and Canada Agreement in Question Period 2:31

The new trade deal Canada has agreed to sign with the U.S. and Mexico is being applauded for including measures that will protect jobs and preserve cultural industries — and panned for concessions that could harm the dairy sector.

Calling it a "great day for Canadians," the head of the country's largest private sector union said the USMCA will stem the flow of jobs to Mexico, protect cultural identity and preserve a formal process for settling trade disputes.

Jerry Dias, national president of Unifor, conceded the deal isn't good for dairy, but said overall the USMCA will yield benefits for Canadian workers and the economy.

"There are some incredible victories in this deal, things we've been arguing and fighting for for the last 24 years," he said.

Dias said another downside to the deal is a change to intellectual property rules that will extend the data protection on biologic drugs to 10 years from eight. But he expects a national pharmacare plan will buffer Canadians from escalating medical costs.

"Am I comfortable? The answer is yes. Is it a perfect deal? The answer is no. But are we better off today than we have been over the last 24 years? I'll say emphatically, the answer is yes," he said.

Steel tariffs intact
Dias said he is pleased the deal fends off the threat from President Trump to slap 25 per cent tariffs on Canadian automobiles. While the reformulated deal does not lift the existing tariffs on steel and aluminum, Dias said he believes it's better to find a permanent solution through the dispute process than to have a quota that could lead to a "generational" problem.

Jerry Dias, national president of Unifor, the largest private sector union in Canada, speaks to reporters about the USMCA trade deal, on Parliament Hill in Ottawa Monday. (Justin Tang/Canadian Press)

Jean Simard, president of the Aluminum Association of Canada, said he was disappointed that the tariffs weren't addressed in the new deal.

"We are certainly glad to see that the three countries have reached an agreement. We are very disappointed that section 232 (tariffs on national security grounds) on aluminum and steel have not been dealt with, and we are strongly urging Minister Freeland and Prime Minister Trudeau, who has spent lots of time in our plants recently, to remember our thousands of workers and ensure that Canada's world class aluminum industry can grow free of tariffs and quota."

Impact on dairy sector
Ontario Premier Doug Ford expressed concern about the impact of the deal on his province's agriculture sector.

"While I'm optimistic that the USMCA announced today will create continued opportunities, I remain concerned about the impact of Canada's reported concessions on Class 7 milk and access to Ontario's dairy market could have on our agriculture sector. We also remain concerned about the remaining steel and aluminum tariffs," he said.

"Our government will be speaking directly with industry representatives from Ontario's steel, aluminum, auto and agriculture sectors to determine the impacts of this deal."

The Dairy Farmers of Canada (DFC) said they have paid the price to conclude the trade agreement.

"The announced concessions on dairy in the new USMCA deal demonstrates once again that the Canadian government is willing to sacrifice our domestic dairy production when it comes time to make a deal," said DFC President Pierre Lampron in a statement.

"The government has said repeatedly that it values a strong and vibrant dairy sector — they have once again put that in jeopardy by giving away more concessions."

Dennis Darby, president of Canadian Manufacturers and Exporters, called the agreement a "significant step" that preserves integrated manufacturing supply chains and will help create certainty for business.

"The manufacturing sector is the cornerstone of the North American economic relationship and the reason this trade agreement is so critical," he said in a statement.

"We worked closely with the government throughout the negotiation to ensure the integrated manufacturing sector would remain unharmed and strengthened where possible. We believe the USMCA has accomplished this objective."

 

[ccc]

With a trade deal negotiated, Trudeau thanks many people — but not Donald Trump
By Jesse Ferreras Online Journalist Global News

One person was conspicuous by his absence when Canadian Prime Minister Justin Trudeau doled out thanks to parties who were involved in the negotiations of the United States Mexico Canada Agreement (USMCA) on Monday.

That person was none other than U.S. President Donald Trump.

At a press conference on Monday alongside Foreign Affairs Minister Chrystia Freeland, Trudeau thanked her, as well as Canada’s premiers, former Canadian prime minister Brian Mulroney, NAFTA negotiator Steve Verheul, Canadian ambassador to the U.S. David MacNaughton and U.S. trade representative Robert Lighthizer.

Trump was nowhere to be heard.

The omission was notable after a lengthy spell of negotiations that has seen tensions grow between Canada and the U.S.

Trudeau and Trump entered into a war of words that began in May, after Trump imposed tariffs on Canadian aluminum and steel.

Canada retaliated with tariffs targeting approximately $16.6 billion in goods.

The rhetoric between them ratcheted up throughout June, with Trump taking aim at Canadian tariffs on dairy that he said were “killing” American agriculture.

Trudeau, meanwhile, said he was “disappointed” that Trump had imposed tariffs on steel and aluminum.

At a separate press conference on Monday, Trump admitted there were tensions between himself and the prime minister — even as he previously said America’s relationship with Canada and G7 countries was “10 out of 10” — and said whatever came between them did not affect the ability to complete this deal.

“He’s a professional, I’m a professional,” Trump said.

Trump went on to say that he had just spoken with Trudeau, that the pair have a “great relationship,” and that they were going to work as “partners.”

The U.S. president said his tensions with Trudeau ended “at about 12 o’clock last night.”

“He’s a good man, he’s done a good job and he loves the people of Canada,” Trump said.