Trade deal returns U.S. to ‘manufacturing powerhouse’

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Negotiators worked frantically ahead of a midnight ET (0400 GMT) U.S. imposed deadline to settle differences, with both sides making concessions to seal the deal.

U.S President Donald Trump praised the deal, saying in a tweet this morning that negotiators had crafted a "wonderful new trade deal with Canada", that "solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our farmers and manufacturers, reduce trade barriers to the USA and will bring all three great nations closer together".

Officials said they wanted it signed before the new Mexican president, left-wing populist Andrés Manuel López Obrador, took office in case he sought changes. When told that he seemed confident of congressional approval after his announcement, he said he was "not at all confident" - but not because of the deal's merits or defects.

He said it was too soon to talk to China about trade deal and said it was "privilege" for other countries to trade with the United States and for them "to come in and attack the piggy bank".

Prime Minister Justin Trudeau said he spoke with the US President Donald Trump this morning. Every time there's a deal there's a little more access given. He said Canada did not simply accept "any deal". "We ended up in a good place that we ultimately think is a good deal for all three countries".

It's also said that the new rules will encourage more investment by auto companies in research and development in the region.

Discussions between the United States and Canada had stalled amid souring relations between Trudeau and Trump, who lashed out at Canada last week during the United Nations General Assembly meeting for mistreating the United States on trade.

The deal is expected to take effect around January 1, 2020. It replaces NAFTA, which Trump has lambasted as a job-wrecking disaster that has hollowed out the nation's industrialized base.

Canada has agreed to provide USA dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market.

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Business groups largely praised the new agreement, which maintains Canada's duty-free access to the huge and profitable North American market.

The new United States-Mexico-Canada Agreement (USMCA) is aimed at bringing more jobs into the United States, with Canada and Mexico accepting more restrictive commerce with the United States, their main export partner.

The revamped deal has 34 chapters and governs more than $1tn in trade between the three countries. "It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the almost half billion people who call North America home".

A revised Nafta that includes Canada has a far greater chance of being ratified by Congress but its fate is still somewhat uncertain. Uncertainty over the fate of NAFTA talks had threatened to batter Mexico's currency and economic outlook.

For we already knew that US President Donald Trump knows nothing about the actual details of America's trade agreements, and cares even less.

"It will transform North America back into a manufacturing powerhouse", he said.

U.S. Trade Representative Robert Lighthizer told reporters in Washington that the United States would be willing to discuss the matter "after we take a few days to catch our breath".

The question of how to deal with the hefty tariffs that Trump imposed on Canadian steel and aluminum earlier this year is still being discussed, the Canadian official said. "We certainly are pleased to see that there was an agreement over the weekend but, at the same time, we're very disappointed that current USA tariffs on aluminum imports from Canada haven't been lifted".

The deal may avert a trade war with Canada, avoiding escalating tit-for-tat tariffs with the USA neighbor that could have impacted American businesses. "Without tariffs, we wouldn't be standing here", he said.

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