Canada and the United States reach a deal on NAFTA

Canada and the United States reach a deal on NAFTA

Canada and the United States reach a deal on NAFTA

The new deal, reached just before a midnight deadline imposed by the USA, will be called the United States-Mexico-Canada Agreement, or USMCA.

Trudeau arrived at his office Sunday night but did not comment as he walked by reporters ahead of the unusual late meeting with his ministers.

What began as a marathon in the summer of 2017 ended in a flat-out sprint as negotiators in Ottawa and Washington worked around the clock to put the finishing touches on language adding Canada to the deal reached over the summer between the US and Mexico.

Trade officials for the three countries have been at it for more than a year.

On top of that, Canada's 270 per cent tariffs on dairy products that exceed the established quota have long left a sour taste in the president's mouth.

The Trump administration repeatedly threatened to move forward with the bilateral deal, excluding Canada.

Trump announced that the United States would impose a 25% tariff on imports of Canadian steel and a 10% tariff on aluminum in June, which in turn prompted Canada to respond with retaliatory tariffs on a slew of U.S. products in July.

USA stock index futures rose, with S&P 500 Index e-mini futures up more than 0.5 percent, suggesting the benchmark index would open near a record on Monday.

Updates with "basis of agreement" reached by Canada and U.S. With AP Photo.

Canada also wanted to keep a NAFTA dispute-resolution process that the USA wanted to jettison.

"We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood".

Canada also appears ready to accept assurances that steel and aluminium tariffs that Trump has imposed will be lifted, though it remains unclear whether the taxes would be replaced by quotas that limit metal imports. Mexico wants a deal signed before December 1, when the new Mexican administration takes over and the Trump administration wants the current, Republican-controlled Congress to vote on the deal quickly, given a potential change in control after the November midterm elections.

"My thanks for your advice and support", Trudeau posted in a statement on Twitter, stating he'd spoken to David McKay, president and CEO of the Royal Bank of Canada; Victor Dodig, CIBC president and CEO; Scotiabank president and CEO Brian Porter; BMO financial group CEO Darryl White and TD president and CEO Bharat Masrani.

Keeping chapter 19 will not affect Washington's enforcement of anti-dumping and anti-subsidy laws, said a US official.

The new treaty is expected to be signed by President Trump and his Canadian and Mexican counterparts in 60 days, with Congress likely to act on it next year.

Daniel Ujczo, a trade attorney with the Dickinson Wright law firm who has followed the talks closely, said he expects the U.S. to get more access to the Canadian dairy market. The agreement also exempts tariffs on 2.6 million automobiles.

NAFTA tore down most trade barriers between the United States, Canada and Mexico, leading to a surge in trade between the three countries.

Reaching a pact with Canada allows the 24-year-old pact to remain trilateral and for the U.S.to check another box for its legislative process in the lead up to a congressional vote.

Flags of Canada, the United States and Mexico. This news was provided by sources within the Canadian and USA governments.

The new deal will replace the North American Free Trade Agreement (NAFTA), which had always been derided as unfair to the United States by Trump.

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