Canadian auto parts makers should hug Trump for USMCA: Wildeboer

Canadian auto parts makers should hug Trump for USMCA: Wildeboer

According to Trump, it would be the "US-Mexico trade agreement", to which Canada, he said, might be added.

The recently announced U.S. -Mexico-Canada Free Trade Agreement that will replace the North American Free Trade Agreement (NAFTA) includes allowing the U.S. expanded dairy market access. "I think we're making some progress", Portman said.

Following the Cabinet meeting, Trudeau said it was "a good day for Canada", while Jesus Seade, the trade negotiator for Mexico's incoming president, tweeted that the deal meant "the door closes on trade fragmentation in the region". Now, under the deal, Mexico won't be able to rely on cheap components anymore, and subsequently, that will drive an upgrade of the Mexican industry. Canada and Mexico are our two largest customers for agriculture products, and certainty about the terms of trade between the US and our closest neighbors is necessary to help the struggling farm economy.

"I hope what they did in the renegotiated agreement is to make sure that the labor and wage standards in Mexico are lifted so that the playing field is more even now", Castro said.

Critics say the clause impedes Canada's freedom to negotiate any future bilateral-trade deal with China - something Ottawa has shown interest in doing - because it may effectively give the United States a seat at the table, if not an implicit veto over a Canada-China free-trade pact.

Canada had agreed to provide USA dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market, the sources said, adding that the Canadian government is prepared to offer compensation to dairy farmers hurt by the deal.

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If repeated in other USA negotiations with the European Union and Japan, it could isolate Beijing in the global trading system. "China wants to talk very badly", he said. "There's no China deal that's worth losing a ratified USMCA".

As for the timeline of negotiations with China, Kudlow said the U.S.is open to "significant and serious" talks any time, but those talks have thus far been "unsatisfactory". The new agreement requires that 75 percent of the parts for automobiles be made in either of the three countries.

Republicans could push for a swift vote on the U.S. -Mexico-Canada Agreement if Congressional power swings to Democrats in the November elections.

"The president's issue is dairy. and those discussions were actually going fairly well over the last couple of weeks", said the source, prompting fears the "dealmaker in chief" would agree to a deal in principle with Canada if he met Prime Minister Justin Trudeau at the UN.

The US President said it is a privilege for other countries to do business with the United States and to "come in and attack the piggy bank".

Some American dairy groups say the policy has undercut US producers hoping to export to Canada and other countries.

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