USMCA: the US, Canada, and Mexico have a new NAFTA deal

The US and Canada struck last minute NAFTA deal Sunday night.

United States, Mexico City, and Canada, United States, Mexico, and United States. Newly dubbed the "USMCA" – the US-Mexico-Canada Agreement – it's basically an updated version of the North American Free Trade Agreement between the three countries.

US Trade Representative Robert Lighthizer and Canadian Foreign Minister Chrystia Freeland – the two top negotiators on USMCA – said in a joint statement late Sunday night, together with Mexico, they had reached a "new, modernized trade agreement."

"USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fair trade and robust economic growth in our region," the statement read. "It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the near half billion people who call North America home."

The breakthrough marked a reversal of a tough week-end and a flurry of tough rhetoric, especially on the President Donald Trump and his administration. Both Trump and Lighthizer are more likely to move ahead with a bilateral deal between the US and Mexico, leaving Canada out.

But on Friday, the United States and the United States agree to hold the bilateral text, in the hopes of an agreement between the US and Canada to update the NAFTA.

And now a deal has been reached, and both sides notched victories. Canadian Prime Minister Justin Trudeau called it "good day for Canada."

Trump, tweeting Monday morning, congratulated Canada and Mexico and called it "great deal for all three countries."

Senior Trump administration officials are calling for a big win for the US, Canada, and Mexico and say the deal is one of the most important campaign promises.

A peek at what the United States and Canada agreed to during negotiations

A few notable issues stalled the negotiations between Canada and the United States, which are more likely to be resolved.

The US wanted more access to Canada's dairy market, and they said that they were "a good deal for American farmers" on that front. The deal also calls for the elimination of class 7 milk pricing, a new class of dairy Canada.

Canada wanted to preserve NAFTA's Chapter 19, an independent panel set up to resolve special trade disputes. though it's renumbered in the final USMCA agreement, the provision stays mostly intact.

Ottawa also seeks protection from the United States, including Canada, which requires a national security justification. Senior Trump Administration Canada said accommodations would be made to protect Canada from. They will be dealt with separately.

These, of course, are not the only components of the deal, and this new agreement incorporates the components of the bilateral agreement between the US and Mexico, including rules of origin for automobiles. country to avoid tariffs), intellectual property protections, and strengthened labor rules.

There are still a few hurdles before NAFTA 2.0 USMCA becomes a reality. The revised provisions will be approved by all three governments, including the US Congress, which will not consider the agreement until 2019.