Trump called the accord “the most important trade deal we’ve ever made by far.” He predicted the agreement would “easily” pass Congress.
Donald Trump hails Canada, Mexico trade pact as a ‘great deal’ for all sides
Canadian dairy farmers critical of new USMCA trade deal, says it will have ‘dramatic impact’ on sector
The new agreement makes modest revisions to a trade deal Trump once called a “disaster,” easing uncertainty for companies reliant on tariff-free commerce among the three countries. U.S. stocks climbed on Monday toward records, while the Canadian dollar and the Mexican peso gained. The S&P 500 Index climbed 0.6 per cent by 12:29 p.m. in New York.
Trump cited in particular provisions governing automobiles, raising the portion of their content that must originate within the region to 75 per cent and requiring at least 40 per cent of a car to come from workers whose pay averages more than US$16 per hour. He called those rules “the most important thing” for him.
“We will be manufacturing many more cars,” Trump promised. “And our companies won’t be leaving the United States, firing their workers and building their cars elsewhere. They no longer have that incentive.”
Trump also called the agreement “a very, very big deal for our farmers.” He said the U.S. negotiated more favorable terms for exporting dairy and produce.
Trump said he would continue steel and aluminum tariffs on Mexico and Canada “until such time as we can do something different,” adding that might include quotas, “so that our industry is protected.”
U.S. and Canadian negotiators worked around the clock this weekend to secure an agreement just before a Sunday midnight deadline, allowing leaders from those nations and Mexico to sign the pact by late November. The 24-year-old NAFTA will now be superseded by the U.S.-Mexico-Canada Agreement, or USMCA, covering a region that trades more than US$1 trillion annually.
Canadian Prime Minister Justin Trudeau called it a “good day for Canada & our closest trading partners” in a tweet. Jesus Seade, the NAFTA negotiator for Mexican President-elect Andres Manuel López Obrador, said “NAFTA 2 will give certainty and stability to trade.”