Tuesday, 11 December, 2018

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

Trump and Trudeau agree on a revised NAFTA deal Canada-US reach deal to reform NAFTA
Cristina Norman | 04 October, 2018, 08:39

President Donald Trump on Monday lauded the new trade accord with Canada and Mexico as the most important ever for the United States and "a historic win" for American farmers, manufacturers and autoworkers.

After threats from President Donald Trump that he could leave the Canadians out of a trade deal altogether, the U.S., Canada, and Mexico agreed to a trilateral trade named simply the United States-Mexico-Canada Agreement.

President Donald Trump is embroiled in a trade dispute with China that has seen the USA impose tariffs on hundreds of billions of dollars worth of Chinese goods, prompting Beijing to retaliate.

Despite Trump's attacks and the acrimony between the top trade negotiators, the two sides were able to reach a trade deal on Sunday.

Canada will open its dairy market further to USA producers, and Washington left unchanged the dispute settlement provisions which Ottawa demanded.

But Canada also had to agree to offer more access to its highly protected dairy market, which infuriated the influential farming lobby.

"Moving forward on eliminating the tariffs on steel and aluminum remains a priority for us, for Mexico, and is something the Americans have indicated they are more than willing to work on", Trudeau told a news conference. The US had also sought increased American content for duty-free autos. He said this will help manufacturing of the pharmaceutical sectors. The United States has been increasing the pressure on China in recent months to change what it views as unfair trading practices; as of last month, the United States has imposed tariffs on US$250-billion of Chinese goods - representing almost half of its annual imports from China.

Mexican President-elect Andres Manuel Lopez Obrador embraced the new deal. "That's the motherlode, that's the big one", U.S. President Donald Trump said last week during his explosive news conference on the margins of the UN General Assembly in NY.

Canadian Prime Minister Justin Trudeau called a meeting with his Cabinet late Sunday after Canada and the USA made substantial progress in free trade talks.

For Trump, the USMCA is only the start of what he says is a global pushback against countries taking advantage of the USA economy.

The US and Mexico were pushing to get the new deal through their legislatures before Mexican President-elect Andres Manuel Lopez Obrador takes office on December 1. And I'm not talking about [Mexico and Canada], I'm talking about everybody. I'm talking about everybody.

He said the country's economic future is further solidified with a $40-billion liquefied natural gas deal announced Tuesday by five companies that will build the project in northern British Columbia.

Likewise, he claimed that India - which he described as the "tariff king" - wants to start trade talks with the United States "immediately".

In the end, the dispute-resolution mechanisms from NAFTA remain largely intact in the new deal, that Trump christened the USMCA.

"There is clearly an opportunity to constructively engage the United States between the achievement of a deal in principle and the ratification or signature of that deal", he said.

The concessions are in theory a problem for Trudeau, whose ruling Liberals say they need to pick up seats in Quebec in an election set for October 2019 if he is to retain power.

That disagreement led Saudi Arabia to expel the Canadian ambassador from the country and freeze all talks. It was her appearance on a panel in Toronto two weeks earlier dubbed "Taking on the Tyrant" that featured a video montage with Trump alongside autocrats like Syria's Bashar al-Assad and Chinese President Xi Jinping.

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