Canada, US in last-minute NAFTA deal

Clock ticks down on potential Sunday NAFTA deadline

The Times reports that Canadian Prime Minister Justin Trudeau attended a Cabinet meeting at 10 p.m.in Ottawa to discuss the details of the deal, known as the United States-Mexico-Canada Agreement (USMCA) with senior White House adviser Jared Kushner and Robert E. Lighthizer, the presidents top negotiator.

The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from USA anti-dumping tariffs, US and Canadian officials said.

Following the Cabinet meeting, Trudeau said it was "a good day for Canada", while Jesus Seade, the trade negotiator for Mexico's incoming president, tweeted that the deal meant "the door closes on trade fragmentation in the region".

Trump complained about the behavior of Canadian officials, and said he rejected a meeting with Prime Minister Justin Trudeau, although Trudeau's office said no meeting was planned.

Canada also agreed to a quota of 2.6m vehicles exported to the United States in the event that Trump imposed 25% global autos tariffs on national security grounds, a side letter to the agreement showed.

OTTAWA - An 11th-hour NAFTA deal has been reached that allows Canada to rejoin the trilateral trade pact, sources tells The Canadian Press. It was unclear, however, whether Mr. Trump had authority from Congress to pursue a revamped NAFTA with only Mexico, and some lawmakers said they wouldn't go along with a deal that left out Canada.

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Trump announced that the USA would impose a 25% tariff on imports of Canadian steel and a 10% tariff on aluminum in June, which in turn prompted Canada to respond with retaliatory tariffs on a slew of United States products in July.

According to Navarro, the new NAFTA aims to "restore North America as a manufacturing powerhouse by reclaiming our supply chain from the rest of the globe".

US-Canada talks bogged down earlier this month, and most trade analysts expected the September 30 deadline to come and go without Canada being reinstated.

Three of the major outstanding issues between Canada and the U.S.in NAFTA talks leading up to this week were Section 232 national security tariffs, NAFTA's Chapter 19 dispute resolution mechanism, and regulations around Canada's dairy sector.

No substantial changes appear to have been made to the chapter 19 trade dispute settlement mechanism, nor the state-to-state dispute settlement. "We're doing our best".

On the matter of Section 232 tariffs, Trump's trade weapon of choice, US officials told a late-night conference call with reporters that the two sides had "reached an accommodation" on the issue.

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The U.S. Chamber of Commerce has said it would be "unacceptable to sideline Canada, our largest export market in the world".

The United States-Mexico-Canada Agreement (USMCA) updates and replaces the almost 25-year-old North American Free Trade Agreement (NAFTA), which President Donald Trump had labeled a disaster and promised to cancel.

"We agreed to that", Lopez Obrador told reporters in Mexico City.

They made a joint statement late Sunday night, in which they have named it USMCA (United States-Mexico-Canada Agreement). In August previous year, he started a review of the trade pact with Mexico and Canada that opened up negotiations.

The agreement also exempts tariffs on 2.6 million cars.

Canada, for instance, agreed to give the Americans access to five per cent of the Canadian dairy market, about the same it granted to European and Pacific-Rim nations in the CETA and TPP accords combined, the source said. The quota would allow for some growth in tariff-free automotive exports from Canada above current production levels, the source said.

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