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Donald Trumps heralds 'new dawn' with trade deal

04 October 2018
Donald Trumps heralds 'new dawn' with trade deal

Speaking about the newly announced trade deal between the US, Canada and Mexico, Mr. Kudlow said the agreement will allow the three countries to present a "united front" against unfair trading practices.

The USMCA is still built on the framework of NAFTA, free agriculture trade flowing through North America.

Dan Ujczo, a trade lawyer with Dickinson Wright, tells the Post, "the heavy lift is going to be getting a trade deal through the next Congress in 2019 as well as ratification by Mexico's new Congress and in Canada during federal election year".

WATCH above to hear Toronto Sun columnist Lorrie Goldstein break down the new NAFTA reboot with our host Mark Daniell and if Canada comes out a victor or loser out of this deal.

US President Donald Trump has been pushing for a complete overhaul of the 25-year-old continental trade deal, which he says has been a "rip-off" for the United States. Vehicles will qualify for the duty-free treatment provided 75% of their parts were manufactured in member states, up from 62.5%, and that 40-45% of used parts were made by workers earning at least $16 per hour. The US had also sought increased American content for duty-free autos. He said this will help manufacturing of the pharmaceutical sectors.

While the trade agreement helped strengthen the loonie, rising oil prices and other factors also have boosted the Canadian dollar, said Steven Globerman, an worldwide business professor at Western Washington University, in an email to The Bellingham Herald.

"In the coming days, I will closely review the text of this proposal to see whether the proposed changes, on balance, enhance or weaken the enormous economic benefit we have derived from the original agreement". Both Republicans and Democrats in Congress, as well as business and trade unions, indicated they would be unlikely to support such a move. And I'm not talking about [Mexico and Canada], I'm talking about everybody.

Trump said his strategy was bearing fruit.

And with that, after almost 14 months of tense negotiations, we now have a newly named regional trade agreement.

In exchange, USA negotiators have agreed to retain Chapter 19, the dispute resolution mechanism of NAFTA, and exemptions for Canadian creative industries.

Mexican officials have said they hope the steel and aluminum dispute can be resolved before USMCA is signed.

President Trump has praised the new trade deal, deeming it a "wonderful" and "historic" trilateral agreement. USA law requires the White House to submit the text to Congress 60 days before signing.

Sunday's announcement capped six weeks of intense talks.

Stock markets rose on news of the agreement, with the Dow Jones in NY up 1.0 per cent in late morning, just shy of a record high.