After intense last-minute discussions ahead of a self-imposed midnight deadline, U.S. and Canadian officials announced late Sunday they reached a trade deal, allowing a modified three-way pact with Mexico to replace the nearly quarter-century old North American Free Trade Agreement.
The U.S.-Mexico-Canada Agreement underpinning $1.2 trillion in annual trade is expected to be signed in 60 days by President Donald Trump and his Canadian and Mexican counterparts.
Trump hailed the wonderful new Trade Deal on Monday and calling it a great deal for all three countries that solves the many deficiencies and mistakes in NAFTA.
USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region, said U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland in a joint statement. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.
The U.S. agreement with Ottawa will boost American access to Canada's dairy market with some concessions on its heavily protected supply management system while shielding the Canadians from possible U.S. auto tariffs.
Steel and aluminum tariffs imposed by Washington, will remain, however. Canada had demanded protection from Trump's tariffs on imported steel and aluminum.
The metal tariffs discussions are on a completely separate track, according to a senior U.S. official.
However, NAFTA's Chapter 19 dispute resolution system will remain intact.
Leaving a Sunday night 75-minute Cabinet meeting, Canadian Prime Minister Justin Trudeau only said it was a good day for Canada.
The National Association of Manufacturers in the United States declared itself extremely encouraged by initial details of the new three-way pact.
As we review the agreement text, we will be looking to ensure that this deal opens markets, raises standards, provides enforcement and modernizes trade rules so that manufacturers across the United States can grow our economy, said NAM President and Chief Executive Officer Jay Timmons.
This administration is committed to strong and effective enforcement of this agreement, a senior U.S. official told reporters. This is not going to just be words on paper. This is real.
