Canada and USA reach tentative NAFTA deal

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Trump himself seemed to allude to the difficulties ahead in his comments to reporters on Monday. Watch the president's remarks in the player above.

Freeland also touched on U.S. President Donald Trump's apparent dislike of her, something thrust into the open recently when Trump told reporters in New York: "We're very unhappy with the negotiations and the negotiating style of Canada".

President Donald Trump hailed his revamped North American trade agreement with Canada and Mexico as a breakthrough for US workers on Monday, vowing to sign it by late November.

Perhaps the biggest cost of securing commercial peace with President Donald Trump was sacrificing Canada's commitment to freer trade, a pillar of this country's economic policy for at least three decades, albeit one championed hypocritically on occasion.

"I do not want to get in front of that process", White House economic advisor Larry Kudlow said when asked what kind of trade deal United States wants to have with India. Meanwhile, Canada and Mexico tend to be more focused on consumer protections.

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, Canadian sources said.

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Canada has also staved off the tariffs Trump threatened to impose on autos and auto parts that could have devastated the Canadian auto industry, which contributes over $50 billion in income and sustains more than 500,000 direct and indirect well-paying jobs in Canada.

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

"We had to make compromises, and some were more hard than others", he said. US dairy farmers will receive additional access to the Canadian market.

Perez said the agreement will likely be tweaked again before the United States, Mexico and Canada sign off on it late next month.

The deal, reached late Sunday, will govern $1.2 trillion United States in trade, making it the biggest agreement in the country's history, and marks the end of an era during which the USA has been "treated so badly" on trade by other countries around the world, the president said.

Trump said he spoke earlier today with Trudeau and outgoing Mexican president Enrique Pena Nieto, and also extended thanks to Pena Nieto's replacement, Andres Manuel Lopez Obrador.

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Trump, for his part, said the accord would return the United States to a "manufacturing powerhouse". It was unclear, however, whether Trump had authority from Congress to pursue a revamped NAFTA with only Mexico.

Some lawmakers immediately expressed relief that Canada had been reinstated in the regional trading bloc. He said concessions on dairy had to be made in order to get a deal done to protect the economic interests of Canada. "NAFTA is a proven success".

It was surprising that the United States found it easier to cut a deal with Mexico than with Canada, a longtime ally with a high-wage economy similar to America's.

To qualify for zero tariffs a vehicle or truck must have 75 per cent of its components manufactured in Canada, Mexico or the United States, which is a boost from the current requirement of 62.5 per cent. Farmers have developed export markets in Canada and Mexico.

But relations between Ottawa and Washington soured. In the aftermath of a disastrous G-7 summit in Quebec in June, Trump called Trudeau "weak" and "dishonest".

Dispute settlement: NAFTA's dispute-settlement system, which allows member countries to bring grievances against other members over allegations of unfair trading practices, will remain the same, a key win for the Canadians. American dairy products will see less duties when accessing the Canadian market, while B.C. wines will have to share grocery store shelf space with USA companies. It will be interesting to see how far the Canadian dollar falls. Perrin Beatty, the president of the Canadian Chamber of Commerce, said his group was "delighted" by the apparent deal. And Democrats have taken years to approve trade deals even prior to the Trump era.

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"It has been shocking and disappointing and upsetting". "I've got a feeling they will say they are done tonight".