US, Canada NAFTA trade deal: Trump said Chrystia Freeland hates America

Official says basis of Canada-US deal reached

Daniel Ujczo, a trade attorney with the Dickinson Wright law firm, said Canada and Mexico also must give the US notice before starting those trade discussions and updates of all proposals made during the negotiations.

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.

A new era in North American free trade dawned in the dead of night Sunday as a 14-month NAFTA modernization effort between Canada, the USA and Mexico finally came to fruition with just hours to spare before an end-of-weekend deadline. One letter promises Canada will be exempt from any future USA tariffs imposed on automobiles and auto parts as a matter of national security. Canada also was not able to remove steel and aluminum tariffs. And, at one point, Trump's trade adviser Peter Navarro said there was "a special place in hell" for Trudeau.

Trump said the tariffs he has imposed - or threatened to levy - may be a key reason he landed an agreement after months of agonizing talks. "At first glance, we're encouraged with efforts to modernize some chapters that specifically affect trade in agricultural goods".

The agreement includes new rules for the auto sector, such as requiring 40 per cent of vehicle parts be made by workers paid at least $16 an hour, a labour rule Foreign Affairs Minister Chrystia Freeland said was unique in trade agreements and a very progressive way to protect jobs for higher-wage workers. The dispute resolution rules remained largely intact.

Canada fought hard to retain Chapter 19, a holdover from NAFTA that US trade ambassador Robert Lighthizer worked tooth-and-nail to eliminate.

The B.C. Lumber Trade Council said retaining the dispute mechanism was "absolutely critical".

Treat, who met with USA and Canadian negotiators, said the new agreement does little, if anything to address critical concerns such as climate change or affordable medical devices and drugs.

Derek Burleton, deputy chief economist at TD Economics, echoed the sentiment of many in expressing relief at an agreement.

Like many other Canadians, Rosen feels Canada hasn't been treated with respect, referring to the personal attacks and steel exports that are still subject to USA tariffs over what Trump calls national security concerns.

Technology and retail companies also won protections in the new deal they hope Washington will vigorously pursue with China, where many USA industries have complained of unfair treatment.

It said the measures will have "a dramatic impact not only for dairy farmers but for the whole sector".

The new North America trade deal includes requirements created to increase well-paid automobile manufacturing jobs in the USA and Canada, said Sharon Treat, an attorney at the Institute for Agriculture and Trade Policy and a member of an advisory panel for the US trade representative. Dairy Farmers objected to this, too, but the once-obscure dairy classification had become a lightning rod of discontent for Trump.

On Monday Trump called dairy a "deal breaker" for him in the negotiations. "Now they're going to be treated with respect". Prime Minister Justin Trudeau, however, says there will be compensation for dairy farmers. The prime minister said he knows there is anxiety for dairy producers but also suggested things could have been a lot worse. Canada's chicken, turkey and egg farmers are warning that more market access granted under the proposed free-trade agreement would erode the foundations of their supply-managed industries and lead to losses in farm income. Instead, he said, Canada can only brag about what it didn't have to concede.

"This is a better deal for autoworkers", Treat said.

NDP Leader Jagmeet Singh said Canadians will end up paying more for things like milk and pharmaceuticals under the deal.

"When people are saying there's a cap on auto exports, it's only in the limited situation where the goods are non-conforming with the rules of origin".

Sunday's agreement will also give Trump renewed confidence that his agenda can continue to reshape the global political economy. Trudeau also spoke with Mexican President Enrique Pena Nieto.

With less than an hour before Mexico and the US were poised to forge ahead without Canada, United States Trade Representative Robert Lighthizer and Canada's Foreign Affairs Minister Chrystia Freeland issued a joint statement to confirm their 14 months of negotiations had been fruitful. But on Monday he was all smiles, calling the deal "historic".

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