By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC
NAFTA has officially been replaced.
The United States, Canada, and Mexico have joined together in a trade deal that will swap out the North American Free Trade Agreement for the United States-Mexico-Canada Agreement. The U.S. imposed a deadline on Canada of Sunday night at midnight which accelerated talks to reach a three-country deal.
The new deal will give the U.S. greater access to Canada’s dairy market – a move that is considered vital for U.S. dairy manufacturers. The deal is also supposed to strengthen the middle class while creating good, well-paying jobs and new opportunities for North America.
Standards have also been included in the new trade deal designed to protect intellectual property and trade secrets along with tougher labor requirements for Mexico and environmental obligations designed to combat trafficking in wildlife, timber, and fish.
“Today, Canada and the United States reached an agreement, alongside Mexico, on a new, modernized trade agreement for the 21st century,” U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said in a joint statement.
“USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region.”
Negotiators for the three countries started talks to replace NAFTA more than a year ago. With President Trump frequently referring to NAFTA as “the worst deal ever.”
Canada took a seat on the sidelines in late May when negotiations reached a stalemate. The U.S. and Mexico continued forward and reached a new deal – President Trump then indicated he would move forward without Canada if an agreement could not be met.
USMCA comes just one month after the U.S. and Mexico announced they had reached a new trade to replace NAFTA.
The agreement will run for 16 years with a review after six years. The text of the new deal was to be submitted to Congress late Sunday and is expected to be signed by all three countries by the end of November.
- 5 Oct, 2018
- Josh Smith