Trump says USMCA doesn’t lift steel, aluminum tariffs

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Canadian dairy farmers say they're on the losing end of a new trade pact with the US that will allow Americans to ship more milk north.

A little over a month after the USA and Mexico struck a preliminary agreement on NAFTA's replacement, the us and Canada did the same late Sunday, as hoped-the timing means outgoing Mexican President Enrique Peña Nieto gets to sign the USMCA into law just before leaving office.

After more than a year of negotiations, the 25-year-old North American Free Trade Agreement (NAFTA) is to be replaced by a new United States-Mexico-Canada Agreement (USMCA).

The president argued the USMCA focuses on fairness and reciprocity.

They added: "It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the almost half billion people who call North America home". Both nations run an agricultural trade surplus with the U.S.

Freeland said the debate over dairy was quite normal for trade negotiations in that the USA wanted Canada to open its market in dairy, just as Canada wanted the market opened for cars and auto parts.

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Paul Evans, a professor at the University of British Columbia, said the "astonishing" clause appears to pull Canada into line with the the Americans engage in an escalating trade war with the Chinese - as of last month, the Washington and Beijing had slapped new tariffs on US$360 billion worth of bilateral trade in goods.

A senior administration official, who asked not to be named, tells the Post that the deal includes better protection for labor rights, the environment and intellectual property than trade deals made under the Obama administration.

The most significant difference between NAFTA and the USMCA may be as simple as the rebranding exercise itself, which some observers said would hand Trump political capital, regardless of its substance. This is slightly above the 3.25% market access Canada would have given the United States as part of the Trans-Pacific Partnership, which Trump pulled the U.S. out of past year.

For me, anything above 1.2850 is a good spot to sell because the pair's likely to fall further if a deal gets done.

The grappling with an oversupply of milk and Trump said in April that Canada has made business for American dairy farmers "very hard".

Late Sunday, the Trump administration announced it had reached a three-way trade agreement with Canada and Mexico, the U.S. -Mexico-Canada Agreement (USMCA), replacing the NAFTA agreement that had been in place since 1994.

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Mexico's future foreign relations secretary said the new trade agreement between Mexico, the United States and Canada "provides certainty for financial markets, investment and job creation".

The federal cabinet met at 10 p.m. Sunday for about an hour to discuss the agreement and, after it ended, the prime minister said it was "a good day for Canada" as he left the building. Mexico agreed to allow imports of certain U.S. cheeses.

Other contentious, so-called USA poison pills - which would have limited Canada and Mexico's ability to bid on lucrative US procurement projects - are gone. "This step forward comes as a relief for our members have been searching for much-needed clarity and predictability in the relationship with our (North American) partners", he said in a statement. American negotiators say they got a major victory by forcing Canada to eliminate the pricing scheme for so-called "Class 7" dairy products.

The U.S. first proposed phasing out Canada's dairy system in NAFTA talks and eventually sought more moderate demands.

While many believed that these updates were necessary given that the original agreement was negotiated 25 years ago, Canada will benefit less from these protections than the USA given the differences in size of these sectors in both countries.

"Without tariffs we wouldn't be talking about a deal", Mr Trump said. To ensure Canadian dairy farmers don't go bankrupt, the Canadian government restricts how much dairy can be produced in the country (and how much foreign dairy can enter) to keep milk prices high.

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While most ministers also stayed mum, Agriculture Minister Lawrence MacAulay said he's "always concerned about the agriculture industry".