Prime Minister pledges compensation for dairy farmers hit by USMCA deal

The new deal-the United States-Mexico-Canada-Agreement-replaces the Clinton-era NAFTA.

The trade deal with Canada follows an agreement last month between the US and Mexico, which eliminated some tariffs on goods traded between the two countries.

Donald Trump announced on October 1 his congratulations to Mexico and Canada for working out a trade deal with America.

Trudeau said Canada has successfully preserved key elements of the original North American Free Trade Agreement while building on the agreement to expand opportunity and improve protections for workers across North America.

In a news conference Monday, she said the non-market clause doesn't matter, because any country can walk away from the USMCA at any time with six months' notice, according to Maclean's.

China's hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S. -Mexico-Canada trade agreement that aims to forbid such deals with "non-market" countries, trade experts said on Tuesday.

The deal reached Sunday gives farmers greater access to the Canadian dairy market, a big win for the Trump administration. The deal is likely to come into force by 2020, as it will have to be approved by Congress which will vote while it is in session next year. Beijing responded by announcing tariffs of 5 percent to 10 percent on an additional $60 billion worth of USA imports. That problem may exist in both directions since cars built the USMCA zone may be more costly to export from the US than to build locally overseas.

But the United States and European Union are challenging the declaration, arguing that Chinese state subsidies fuelling excess industrial capacity, the exclusion of foreign competitors and other practices are signs it is still a non-market economy. The same could be true of another provision, requiring at least 40 per cent of a car's content to be built where workers earn $16 an hour.

The measures in the new deal - which Mr Trump dubbed "US MCA" - "will support many - hundreds of thousands - American jobs".

Canada has agreed to provide U.S. dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market. -Mexican deal over the finish line in August, another source close to the talks said.

"Today, the message sent to our passionate, proud and quality-conscious farmers and all the people who work in the dairy sector is clear: they are nothing more than a bargaining chip to satisfy President Trump", added Lampron.

The new agreement means that most of NAFTA-along with the majority of its benefits- were kept in place with some tweaks .

If repeated in other USA negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system. For another, 2.6 million passenger vehicles from Canada and Mexico each would be exempt from tariffs of up to 25 per cent that he has been threatening to impose on imported cars, trucks and auto parts. The U.S. wanted a higher figure.

"You can bet the ask is going to be significant here", said Martha Hall Findlay, chief executive officer of the Canada West Foundation in Calgary.

Canada and the USA have agreed a basis for the revised North American Free Trade Agreement (NAFTA), reaching a compromise in late-night talks on Sunday after months of stand-off. The US can terminate its pact with Mexico or Canada if either of them strikes a deal with a non-market economy. The very worst. Like, the worst.