Trump hails Canada, Mexico trade pact

But it still faces a lengthy path to congressional approval after serving for two decades as a political football for American manufacturing woes.

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". Scheer said he would have gotten a better deal.

"Democrats will closely scrutinize the text of the Trump administration's NAFTA proposal and look forward to further analyses and conversations with stakeholders", House Minority Leader Nancy Pelosi said in a statement.

Foreign Affairs Minister Chrystia Freeland says all farmers in supply management systems will be fairly compensated for the additional market access being given to trading partners in the deal.

"Our farmers were not treated properly by Canada", he said.

But it was a deal with its northern neighbours that proved tougher to reach for the US.

"We have put it on the table that we can not get to the signing without getting to a solution, because it would be illogical for there to be a tariff attack that went unresolved", Economy Minister Ildefonso Guajardo said on a morning TV news show.

"Today, the message sent to our passionate, proud and quality-conscious farmers and all the people who work in the dairy sector is clear: they are nothing more than a bargaining chip to satisfy President Trump", added Mr. Lampron. "The president deserves praise for taking large steps to improve it", said Senate Democratic leader Chuck Schumer of NY.

In Ottawa, Trudeau hailed the agreement as "profoundly beneficial for our economy, for Canadian families and for the middle class".

Kind of. The major USA stock indexes showed gains this morning, with the Dow rising more than 250 points (a gain of almost 1 percent.) But Julia Coronado, an economist and the founder of the company MacroPolicy Perspectives, told us that while this market rally is probably a reaction to the agreement, the pact itself is rather "unimpressive". Store owners like Larry Rosen, chief executive of men's clothing chain Harry Rosen, feared it would drive customers to larger USA -based online competitors.

The new deal reached just before the midnight deadline imposed by the US, will be called the United States-Mexico-Canada Agreement, or USMCA. The USMCA will replace the 24-year-old NAFTA. Most important was fighting off the Trump administration's attempt to raze NAFTA's dispute-settlement chapter, an imperfect shield from Washington's liberal use of punitive tariffs, but a shield all the same.

Keeping that provision, previously known as chapter 19 under NAFTA, was one of Canada's lines in the sand, though the USA initially wanted to eliminate it.

But dairy farmers are angry with the concessions made to grant the United States more access to our market.

While Trump's goals for revising NAFTA were to shrink U.S. trade deficits, claw back lost manufacturing jobs and add new IP protections and digital trade chapters, the new pact leaves North American trade flows largely unaltered.

Despite the United States, Canada and Mexico agreeing on a tri-lateral trade deal, tariffs on Canadian steel and aluminum still remain.

Nafta governs more than $1tr (£767bn) in trade between the two and Mexico. The Canadian sector is worth Can$20 billion (US$16 billion).

In all, Trump said, the pact covers $1.2 trillion in trade.

At least 40% of a vehicle made in North America must also be made by a worker earning at least $16 an hour, which is likely to benefit the U.S. and Canada most.

Trump also took aim at China, the president's main adversary on trade.

Representatives for the government of Mexican president-elect Andres Manuel Lopez Obrador called a press conference to discuss details of the trade deal on Monday.

"Trump treated it like a real estate deal when he was a shyster in Atlantic City", Bothwell said. "He's a professional. I'm a professional", Trump said, calling it a "fair deal".

Trump has used USA tariffs on billions of dollars' worth of imported goods from China and other nations as a negotiating tactic and said the North American deal offered evidence that his approach was working. This included stronger textile provisions than the original trade pact, created to incentivise greater U.S. and Mexican production in textiles and apparel trade. 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. Uncertainty over the fate of NAFTA talks had threatened to batter Mexico's currency and economic outlook.

The United States-Mexico-Canada Agreement will now have to be ratified by the governments of all three countries before taking effect.

"The bar for supporting a new NAFTA will be high". "Like me, many of my colleagues did not support the deal originally".

  • Eleanor Harrison