US, Canada in last-minute NAFTA deal

US, Canada in last-minute NAFTA deal

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

Marc Garneau, a Canadian cabinet minister who heads Prime Minister Justin Trudeau's USA -relations committee, said in a television interview aired Sunday that Canada continues to press for some kind of protection against auto tariffs.

Ambassador David McNaughton said Sunday evening in Ottawa there are a couple of tough issues left to resolve.

When it looked like negotiations had stalled or broken down due to friction between the US and Canadian sides, Kushner kept talks going with aides close to Prime Minister Justin Trudeau, including Gerald Butts and Katie Telford, three people said.

The agreement will increase US access to Canada's dairy market beyond Trans-Pacific Partnership levels, a senior Trump administration official said.

"The U.S. and Canada have reportedly concluded a trade deal. that could potentially preserve the North American Free Trade Agreement or a trilateral bloc with Mexico".

Trump blames NAFTA for the loss of US manufacturing jobs and wants major changes to the pact, which underpins $1.2 trillion in annual trade. The president said he had rejected a meeting with Trudeau because of Canada's high tariffs, though Trudeau's office said no meeting had ever been requested.

The Trump administration repeatedly threatened to move forward with the bilateral deal, excluding Canada. Trudeau said it made no sense to sign on to a new NAFTA only to be hit by new tariffs, and is seeking safeguards. The two sides were hoping to finalize the pact overnight ahead of an announcement on Monday, The Globe and Mail said.

Conversely, Canada won on its demand to maintain NAFTA's "Chapter 19" dispute resolution mechanism-a demand that the USA opposed because it saw the mechanism as infringing on US sovereignty.

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Canada has until now insisted it would not give ground on its key demand for a robust, independent rules-based dispute resolution system for trade disagreements.

We have heard from both sides on this issue that no deal is better than a bad deal.

The Trump administration has been working to sign a new trade deal before Mexican President Enrique Peña Nieto leaves office on December 1. Of these imported vehicles, half were made in Canada or Mexico.

While TPA gives Trump the ability to send a deal to Congress for a simple majority vote, it also includes a statutory 60-day notification period.

Daniel Ujczo, a trade attorney with the Dickinson Wright law firm who has followed the talks closely, said he expects the get more access to the Canadian dairy market.

The United States and Canada forged a last-gasp deal on Sunday to salvage NAFTA as a trilateral pact with Mexico, rescuing a three-country, $1.2 trillion open-trade zone that had been about to collapse after almost a quarter century.

The two nations signed a side letter allowing Washington to pursue tariffs on annual Mexican auto and SUV imports of over 2.4 million vehicles, a number that significantly exceeds last year's total. The president, long a NAFTA critic, complains that the original treaty cost the United States millions of factory jobs and led to persistent US trade deficits with its southern neighbor.

MacNaughton is flying back to Washington Sunday night, one official said.

The U.S. had previously negotiated a deal with Mexico in late August. The quota would allow for some growth in tariff-free automotive exports from Canada above current production levels, the source said.

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