United States and Canada agree free trade deal

U.S. and Canada reach last-minute accord to conclude talks on new NAFTA

The administration officials told CBS News they expected it to be signed by Mr. Trump and his Canadian and Mexican counterparts on November 30, then submitted to Congress, with a vote expected some time next year. "I think Canada is going to put a lot of emphasis on the tariffs because aluminum is one of the key strategic sectors in Canada in terms of competitiveness", he said.

The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from USA anti-dumping tariffs, Canadian sources said.

In a rare piece of good news for global trade, the two countries announced overnight that they had reached an agreement after months of talks.

He says the new deal helps build on the trading success between Ontario and dozens of states but adds the provinces will vigorously defend and protect Ontario's economy and jobs.

The new version would give USA farmers greater access to the Canadian dairy market.

From a Mexican perspective, the agreement will allow outgoing President Enrique Peña Nieto to sign the agreement before he leaves office on December 1 and will allow incoming President Andrés Manuel López Obrador to start his six-year term with a fixed framework for economic relations with a northern neighbor that buys 80 percent of its exports.

Like all negotiations, there was horse trading, but for the Canada there were elements of the new pact that could be viewed as victories.

Canada, the United States' No. 2 trading partner, was left out when the USA and Mexico reached an agreement last month.

The deal comes despite Donald Trump's multiple trade wars, which have seen the U.S. president impose taxes on imports from both Canada and Mexico, bringing retaliation in kind.

Canada had resisted American moves to remove the provision, keen to be able to challenge USA trade penalties.

"When we had the original NAFTA agreements, and Americans were given bigger access to the Canadian market, NAFTA recognized that those industry licences needed to be grandfathered", he said.

USA president Donald Trumps says the agreement was "truly historic".

Dairy farmers around Canada were not so convinced. That is more than the 2 million units now exported.

He tweeted: "It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our farmers and manufacturers, reduces trade barriers to the United States and will bring all three great nations together in competition with the rest of the world".

Pierre Lampron, president of Dairy Farmers of Canada, issued a statement criticizing the concessions made in the dairy industry. US dairy groups said the Class 7 system was created to shut off its shipments of ultra-filtered milk to Canadian processors.

Canada wanted the U.S.to drop the tariff - along with a 10 percent import tax on another construction-relate material, aluminum - as part of the new deal. Dairy Farmers objected to this, too, but the once-obscure dairy classification had become a lightning rod of discontent for Trump. The two sides were hoping to finalize the pact overnight ahead of an announcement on Monday, The Globe and Mail said. Steel prices climbed nationwide before those tariffs even took effect and had jumped by 40 percent as of early July. A similar agreement between Mexico and the US preserves duty-free access to the USA market for vehicles that comply with the agreement's rules of origin.

"The Americans had started off demanding 50 per cent USA domestic content in cars and auto parts".

"We don't like their representative very much", Trump said, in a comment widely believed to be directed as Canada's Foreign Affairs Minister Chrystia Freeland.

The Canadian Chamber of Commerce said it was relieved that an agreement in principle had been reached.

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