[ad_1]
Author's right of the image
AFP
Relations between US President Donald Trump and Canadian Prime Minister Justin Trudeau have sometimes been tense
The United States and Canada have signed a new trade agreement with Mexico to replace Nafta.
The US-Mexico-Canada Agreement (USMCA) would imply greater US access to the Canadian dairy market and a cap on their car exports to the United States.
The President of the United States, Donald Trump, has long sought to renegotiate the Nafta, which ruled more than a billion dollars of trade.
Recently, it seemed that Canada could be excluded in a final agreement.
"Today, Canada and the United States have reached an agreement, along with Mexico, on a new modernized trade agreement for the 21st century: the United States-Mexico-Canada Agreement", said US Trade Representative Robert Lighthizer and Canada's Minister of Foreign Affairs Chrystia Freeland. in a joint statement.
The agreement "will give our workers, farmers, pastoralists, and businesses a high-level trade deal that will free up markets, fair trade, and strong economic growth in our region."
This comes as the United States has waged a multi-pronged trade war this year, including imposing tariffs on imports of steel and aluminum from Mexico and Canada.
What's in the new deal?
The United States-Canada joint statement did not include the details of the agreement. However, the new agreement should contain key provisions on the Canadian dairy industry and car exports to the United States.
US farmers will have access to about 3.5% of the Canadian dairy market, Reuters reported, citing sources.
Canada would also have protected its auto industry from potential US tariffs.
US tariffs on steel and aluminum will remain for the moment, sources said.
Media playback is not supported on your device
How the transaction was concluded
The United States reached an agreement with Mexico in August, but relations with Canada over the trade pact have become increasingly tense in recent weeks.
The Trump administration set Sunday the deadline for the conclusion of an agreement between Canada and Canada.
Trump has adopted a protectionist policy that has led the United States to enter into individual trade agreements, rejecting larger multilateral trade agreements and jeopardizing decades of global free trade.
As part of the policy, Trump has also launched a trade war against China, which has already hurt businesses and could hinder global economic growth.
- United States-China business line: what has happened so far?
Deal brings a "relief"
Jessica Murphy, BBC News Toronto
It had been 13 months since this agreement was in preparation – and there were times when it seemed that the finish line could never be reached.
On several occasions, US President Donald Trump threatened to tear Nafta apart or leave Canada cold after entering into a bilateral agreement with Mexico in August.
Relations between US and Canadian leaders seemed to be worsening as discussions continued.
Such an agreement will therefore relieve the many American and Canadian industries that depend on the Nafta and live in uncertainty since the beginning of the negotiations.
Nevertheless, even though Mr. Trudeau has stated that he would not accept an agreement that is not in Canada's best interests, he will wait until he knows clearly what concessions have been made in the last few hours for Canada. get the deal.
