Negotiators have reached a last-minute trade deal between the US and Canada.
The long-standing €1.03tn NAFTA open-trade zone between the US, Canada and Mexico had been on the verge of collapse before the deal.
However, with an overnight deadline fast approaching, negotiators reached a new deal that they said can result in “freer markets, fairer trade and robust economic growth in our region."
"Good day"
A senior official within US President Donald Trump’s administration said the deal was a “great win for the president and a validation for his strategy in the area of international trade."
Canadian Prime Minister Justin Trudeau said the new United States-Mexico-Canada Agreement (USMCA) marked a “good day for Canada.”
A good day for Canada & our closest trading partners. More tomorrow... https://t.co/qOowhvYW2B
— Justin Trudeau (@JustinTrudeau) October 1, 2018
Meanwhile, Mexican foreign secretary Luis Videgaray said it is a “good night for Mexico and for North America."
President Trump had threatened to walk away from the NAFTA deal, insisting it had led to an exodus of manufacturing jobs to Mexico.
However, after reaching a deal with Mexico in August, the deal with Canada proved more difficult.
US President Donald Trump arrives at the White House in Washington, 29-09-2018. Image: Manuel Balce Ceneta/AP/Press Association Images
Agreement
The two countries finally reached agreement in the early hours of Sunday morning.
US officials intend to sign the agreement at the end of November, before it is sent to US Congress for approval.
President Trump has reportedly approved the deal.
Deal
The new deal will preserve a dispute mechanism that Canada fought hard to maintain, to protect its lumber industry and other sectors from US anti-dumping tariffs.
In return, Canada has agreed to provide US dairy farmers with access to around 3.5% of its $16bn annual domestic dairy market.
Canadian farmers will reportedly receive compensation for the loss in income.
The new agreement also protects up to 2.6 million vehicles Canada could export to the US every year from possible 25% tariffs the US President is planning to impose.
The country currently exports around 2 million vehicles every year to the country.
The deal looks set to ease tensions over a 25% tariff the Trump administration imposed on Canadian steel in June – which prompted Canada to respond with retaliatory tariffs on a slew of US products.
"Economic growth"
Canadian Foreign Secretary Chrystia Freeland said the deal will give Canadian “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.”
“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,” she said.
“We look forward to further deepening our close economic ties when this new agreement enters into force.”
Additional reporting IRN ...
