US and Canada reach last-minute agreement on trade deal to replace Nafta

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Calling it "the single greatest achievement of all time", U.S. President Donald Trump is claiming victory for the American worker after Canadian and American trade negotiators reached a bilateral agreement that resolves the two countries' outstanding issues under the North American Free Trade Agreement.

WASHINGTON-Canadian dairy farmers have panned the renegotiated trade pact between Canada, the United States, and Mexico, saying the new deal will undercut the industry by limiting exports and opening up the market to more American products.

Trump has long criticized NAFTA as perhaps the worst deal ever made, often threatening to rip it up and upend billions of dollars of cross-border trade. A deal that left one of them out could cause chaos for businesses that rely on trade between the countries. The three still need to resolve the USA decision to impose "national security" tariffs on steel and aluminum from Canada and Mexico, which led those countries to impose retaliatory tariffs on billions of dollars' worth of United States farm and manufactured products.

It replaces the 24-year-old North American Free Trade Agreement, which Trump has lambasted as a job-wrecking disaster that has hollowed out the nation's industrialized base.

The new deal, dubbed the US-Mexico-Canada Agreement, is expected to be signed by the leaders of the three member countries - US President Donald Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Enrique Peña Nieto - in November. That's right Mark... the fate of a new trade agreement was all down to an agreement between the USA and Canada.

US farm groups said their first goal in negotiations for the new NAFTA was to maintain duty-free access for farm exports to Canada and Mexico, followed by such issues as Canada's supply management system for dairy, poultry, and eggs.

In Ottawa, PMO officials say there will be another cabinet meeting Monday and a news conference likely as well.

He added: "Congratulations to Mexico and Canada!"

It also preserved a trade dispute settlement mechanism sought by Canada to protect its industries from United States anti-dumping tariffs even as Ottawa agreed to open up its dairy markets to U.S. farmers.

They asserted that USMCA would result in freer markets and fairer trade.

Other contentious, so-called USA poison pills - which would have limited Canada and Mexico's ability to bid on lucrative US procurement projects - are gone.

"I do not want to get in front of that process", White House economic advisor Larry Kudlow said when asked what kind of trade deal United States wants to have with India. "That's dealing with China, dealing with European Union, with everybody, Japan, Mexico, Canada, everybody", he said.

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Financial markets breathed a sigh of relief that the United States and Canada had reached a last-minute deal on Sunday to preserve a single trading zone in North America after serious worries it could fragment under Trump's trade pressures.

So much American trade depends on the 1994 deal that USA financial markets were jittery about a possible collapse of negotiations - and because Mr. Trump made campaign promises to get rid of NAFTA.

John Maxwell is a dairy farmer in Donahue, Iowa.

The goal of the new deal is to have more cars and truck parts made in North America.

Updates with "basis of agreement" reached by Canada and U.S. With AP Photo. Additionally, exclusivity for biologic drugs before generics can be produced will be increased to 10 years in Canada from eight years, a win for the pharma industry. Dairy Farmers objected to this, too, but the once-obscure dairy classification had become a lightning rod of discontent for Trump.

"We have really hurt relationships with our major ally ... for the sake of a few gallons of milk", Jeffrey Rosensweig, a business professor at Emory University, said on CNN. USA administration officials, speaking on the condition of anonymity, said Sunday night that this was a win for farmers in Wisconsin, New York and elsewhere.

However, the new agreement has B.C. agreeing to scrap the restrictions that prevent USA wines from also showing up on grocery-store shelves.

U.S. Rep. Joaquin Castro, D-Dist.

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

Perez said he's encouraged that it remains a trilateral agreement.

But, beyond dairy, Canada also got stiffed by acquiescing to Trump's refusal to lift the tariffs on Canadian steel and aluminum. But President Perrin Beatty said in a statement, the details of the text needed a closer look before a final verdict could be rendered.

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