Drugmakers a big trade-deal victor

Canada and US agree last-minute trade deal

While it is unclear on what grounds USMCA members will determine the status of members, analysts said the clause could be seen as a move by the United States to stop Canada or Mexico signing a free-trade deal with China.

Canadian and US negotiators reached a deal late Sunday on reforming the North American Free Trade Agreement (NAFTA), Canadian media reported, after more than a year of talks triggered by US President Donald Trump's discontent with the 24-year old pact. "Because business desperately needs certainty and uncertainty is anathema to getting things done".

As others have written since then, this early opposition to trade would only get wider and deeper for Trump, leading to his fierce feelings against NAFTA and, eventually, the emergence of this new deal.

Over time it will force auto companies to spend billions of dollars to produce more of their future products in the U.S. or Canada to meet new requirements that 40 to 45 percent of a vehicle's value content come from high-wage areas.

Ms. Freeland said Canada had also been able to preserve its trade "cultural exemption", updated to include digital platforms, to protect Canadian media and art from being overwhelmed by larger US competitors.

"Negotiators on Mercosur just met and that market of roughly 275 million, including Brazil, is moving swiftly towards a comprehensive outcome", Pickerill said.

"It's a good day for Canada", Prime Minister Justin Trudeau said as he left his office.

The new deal was "terrific" for all three countries, he added.

Still, the steel and aluminum industries remain on the sidelines, even as tariffs erode sales and disrupt supply chains.

But the president said his administration had not yet agreed to lift tariffs on steel and aluminum imports from Canada, a contentious issue between the two neighbors. "This has happened, despite assurances that our government would not sign a bad deal for Canadians".

Initial US reaction was effusive, with auto workers, dairy farmers and wheat producers saying the deal would likely create job opportunities and open up agricultural markets. "There's no doubt about that".

The measures will have a "dramatic impact" on dairy farmers and cause the industry to shrink, said Pierre Lampron, president of Dairy Farmers Canada, in a statement. Lagarde, speaking in Washington on Monday, said she's encouraged by the deal over USMCA.

For the general manufacturing sector, the sentiment is one of relief, said Dennis Darby, president and CEO of Canadian Manufacturers & Exporters. The association notes that this aspect of USMCA is beneficial for manufacturing customers that produce goods from scrap commodities processed in North America since they will be able to include scrap as part of the new 60 percent transaction value (or 50 percent of cost) cumulation threshold for duty-free trade within North America.

What is in the new deal?

.

"At a minimum we haven't lost any ground".

"I want to be very, very clear".

Trump cited in particular provisions governing automobiles, raising the portion of their content that must originate within the region to 75 per cent, from 62.5 per cent, and requiring at least 40 per cent of a vehicle to come from workers whose pay averages more than US$16 per hour.

Trudeau said those were being negotiated on a separate track, and that the talks continue.

"For the most part, this was a defensive deal for Canada", he said in an interview.

The Trump administration officially notified Congress of the US-Mexico trade agreement on August 31. "In some ways it has been traumatic for many", Heyman said.

Gone is Mr. Trump's threat of a 25-per-cent tariff on auto imports, a move that would have imperilled a Canadian industry that relies on US exports for nearly 90 per cent of its sales and employs 130,000 people, a lot of them in Ontario.

Related:

Comments


Other news