Donald Trump says new trade deal is 'most important ever'

Sean Reid
October 2, 2018

That gradually moves up to 40 per cent for cars by 2023. There are also concerns that automakers might not make as many cars in North America to export to China and elsewhere overseas because costs would be higher in the USMCA region than making the vehicles in Asia.

While President Donald Trump hails a revised NAFTA as the "most advanced trade deal in the world", some analysts are wondering what all the hype is about. "By doing so, it is slowly bleeding Canada's dairy sector". Trump didn't like that and dairy was a major sticking point in the negotiations.

The dairy farmer from Fort Macleod says he is sick of being used as a pawn after learning of the new trade agreement, which allows USA dairy producers greater access to the Canadian market.

Dairy access was a key US demand, made repeatedly by Trump, though the USA already exports about $500 million of milk products duty-free to Canada every year. That means United States dairy farmers can likely send a lot more milk protein concentrate, skim milk powder and infant formula to Canada (and those products are relatively easy to transport and store). It includes 34 chapters, and eight bilateral side-letters.

They noted that the accord would come up for review every six years, which they said would give the us significant leverage if Canada or Mexico don't comply with any parts of it. "When this improved agreement is implemented, North American trade will be preserved and modernized for the 21st century - just as we set out to do".

The United States has done better than it has ever done, he added.

"As I say, the United States is respected again", he told the press conference.

While the president told reporters that he is "not at all confident" Congress - which could see the House back under control of the opposition Democrats after the November midterm elections - will approve the deal, other members of his administration are expressing greater optimism.

Prodan says this gives the federal government even more incentive to let BC wineries have stronger access to other provinces, so they can sell their products directly to people across the country. Only parts above that quota could face tariffs. He referred India as "tariff king" and recalled his allegations that New Delhi has levied high tariff rate on various american products. That didn't happen - yet.

He said that "tariff king" India on its own has reached out to the U.S. to make a trade deal, without Washington calling New Delhi for negotiations. Trudeau has called the steel tariffs "insulting and unacceptable" since the two nations are such close allies.

"When this got started, Canada was the teacher's pet and Mexico was the problem child", said Michael Camunez, president of Monarch Global Strategies and a former U.S. Commerce Department official.

"So this is a bad deal for individual Canadians who will be paying more for medication, and it's a bad deal for employers and governments whose drug plans will be paying tens of millions of dollars more per year to cover these medications".

"We've been fighting NAFTA since day one".

Additionally, recent U.S. sanctions on the Equipment Development Department of China's Ministry of Defence, after Beijing bought Russian Su-35 combat aircraft and S-400 surface-to-air missile equipment, was understandably not well received in China.

The United States is poised to relent on its demands to eliminate an independent tariff dispute settlement system that Canada has said is a red line in negotiations, according to a person consulted on the negotiations. With the exchange rate, the prices may end up being about the same.

Other reports by

Discuss This Article