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Canada’s Trudeau agrees to Trump’s deal to replace NAFTA shortly before midnight deadline

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President Trump scored a win for the United States after Canadian prime minister Justin Trudeau made a last-minute deal to replace the three-country North American Free Trade Agreement (NAFTA) with a rebranded coalition called the USMCA (the United States-Mexico-Canada Agreement).

Trudeau agreed to the revamped trade deal shortly before the midnight deadline imposed by President Trump, ending weeks of bitter, high-stakes negotiations that threatened the economies of both the U.S. and Canada.


Under the new USMCA deal, the United States gains greater access to the Canadian dairy market — a major sticking point behind President Trump’s initial decision to exclude Canada from its trade deal with Mexico. Trump has repeatedly complained about Canada’s 270% tariff on U.S. dairy exports.

In exchange, the United States agreed (for now) to not impose automobile tariffs on Canada. This is something President Trump used as a threat to get Prime Minister Justin Trudeau to ease restrictive Canadian protections on its dairy market, which American dairy farmers heavily rely on.

However, Trump has yet to lift the steel and aluminum tariffs he imposed on Canada earlier this year. As BizPac Review previously reported, Trump played hardball with Canada, saying he would exclude Canada from the U.S. trade deal with Mexico if NAFTA was not renegotiated more favorably toward the United States.

“We shouldn’t have to buy our friends with bad trade deals and free military protection!” Trump tweeted after Canada and the U.S. failed to reach a revised NAFTA deal by an August 31 deadline.

The president has repeatedly pointed out that the multi-lateral NAFTA deal was bad for the United States, and that’s why he prefers negotiating trade agreements separately with Canada and Mexico.

Even the Trump-hating, leftist New York Times hailed the USMCA (the United States-Mexico-Canada Agreement) as a triumph for President Trump:

“The deal represents a win for President Trump, who has derided NAFTA for years and threatened to pull the United States from the pact if it was not rewritten in America’s favor. Overhauling trade deals has been one of Mr. Trump’s top priorities as president and he has used tariffs and other threats to try and force trading partners to rewrite agreements in America’s favor.”

The United States is Canada’s biggest trading partner (accounting for 75% of what it sells abroad), while Canada is America’s second-largest trading partner, behind China. A non-deal would have hurt both the U.S. and Canadian economies.

President Trump tweeted that he’s pleased with the new trade agreement. “The USMCA is a historic transaction!” he said.



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