Supply managed farmers to get compensation as a result of trade deal

02 October, 2018, 12:37 | Author: Manuel Hopkins
  • Duty free limit rises to $150 for cross border shoppers under new trade deal

A senior Canadian government official says the USA and Canada have reached the basis of a free trade deal.

"It's been a very, very disappointing day", said Wiens who farms near Grunthal, Man. One of the administration officials described the agreement as "a great win for the president and a validation of his strategy for worldwide trade".

President Donald Trump said he plans to sign the updated version of NAFTA by the end of November, which will then be submitted to Congress for approval. That started a 90-day clock that would let outgoing Mexican President Enrique Pena Nieto sign the new pact before he leaves office December 1.

He said he wasn't sure if they would reach an agreement by Monday, but that he was cautiously optimistic.

Those remarks set the stage for a bitter struggle over trade, with Trump threatening to drop Canada from the regional trade pact altogether if it didn't yield to key U.S. demands. "The Canadian economic relationship is clearly the most valuable one for the Americans, so it became clear to me in that first week that Ambassador Lighthizer had real goodwill when it came to getting a deal", she said.

"But for 25 years as a civilian and businessman I used to say, 'How could anyone sign such an agreement?' With this agreement we are closing all of these bad loopholes, they're closed, they're gone".

"When people are saying there's a cap on auto exports, it's only in the limited situation where the goods are non-conforming with the rules of origin".

Canadian dairy farmers are panning the renegotiated trade pact between Canada, the US and Mexico, saying the deal will undercut the industry by limiting exports and opening up the market to more American products.

President Trump and Canadian Prime Minister Justin Trudeau shake hands during a meeting in the Oval Office in February. Meanwhile, Canada and Mexico tend to be more focused on consumer protections. He said concessions on dairy had to be made in order to get a deal done to protect the economic interests of Canada. "Versus a very unpredictable and protectionist USA administration, I think Canada did as well as it could".

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Despite the fact that Ottawa had long pushed back hard against allowing the deal to be periodically revisited, officials in the USA briefing said the new language includes a provision that will indeed see the deal reviewed every six years.

The US appears to be willing to give up demands to drop independent dispute resolution panels if it can have greater access to the Canadian dairy market.

Canada has offered access to its tightly controlled dairy market as part of other recent trade agreements.

Insiders got wind of a breakthrough after 14 months of tumultuous talks and just hours before US and Mexican trade authorities were set to publish their own trade agreement without Canada as a signatory.

The deal will preserve a trade dispute mechanism that Canada fought hard to maintain, to protect its lumber industry and other sectors from United States anti-dumping tariffs.

President Donald Trump says his administration uses tariffs to negotiate trade deals.

Tariffs remain "until such time as we can do something that would be different, like quotas, perhaps, so that our industry is protected", Trump said.

Trump vowed during his 2016 presidential campaign to tear up current US trade deals, which he blamed for a loss of USA manufacturing jobs.

USA officials, in recent weeks, had been adamant that the text for a new deal - whether it would only be with Mexico or also include Canada - to be released by September 30 to meet congressional notification requirements and to allow outgoing Mexican President Pena Nieto to be able to sign the deal before he is succeeded by Andres Manuel Lopez Obrador, a left-wing populist.



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