In a joint statement, U.S. and Canadian trade representatives said the agreement "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".
A side letter to the agreement showed that U.S. President Donald Trump preserved the ability to impose threatened 25 percent global tariffs on autos while largely exempting passenger vehicles, pickup trucks and auto parts from Canada and Mexico.
Canadian Prime Minister Justin Trudeau's Liberal government, seeking to diversify Canada's export base, held exploratory talks with China on trade in 2016, but a launch of formal negotiations has failed to materialize. On Monday, Trudeau pledged to compensate farmers to cushion the blow.
What's the deal with NAFTA and what's going on?
"The Canadian dairy market will now be filled by surplus milk" from the U.S., Wiens said by telephone.
Already engaged in numerous trade disputes across the globe, Donald Trump has slammed India as a "tariff king" that is clinging to the "privilege" of trading with the U.S. and struggling to negotiate a deal to appease Washington.
A Canadian official told The Associated Press that the agreement preserves a NAFTA dispute-resolution process that the US wanted to jettison.
The Trump administration officially notified Congress of the US-Mexico trade agreement on August 31.
Some lawmakers immediately expressed relief that Canada had been reinstated in the regional trading bloc. The investor-state dispute-settlement system, which allows investors to bring grievances against member-country governments, will be phased out for the USA and Canada, while certain industries such as energy will be able to bring cases against Mexico. "NAFTA is a proven success".
Daniel Kurtzer, a scholar at Princeton University, said the Trump administration has overlooked how Republican-voting American consumers will respond when Walmart and other stores hike prices of China-made goods next year. Trump wrote Monday morning. Under the new rules, only cars that are 75 percent made in North America will qualify to escape tariffs, up from 62 percent under NAFTA. Canada exports more parts than completed vehicles to the USA, although Fiat Chrysler Automobiles, Ford, General Motors, Honda, and Toyota have large vehicle assembly plants in Ontario. In the aftermath of a disastrous G-7 summit in Quebec in June, Trump called Trudeau "weak" and "dishonest".
The two countries need each other economically. Additionally, exclusivity for biologic drugs before generics can be produced will be increased to 10 years in Canada from eight years, a win for the pharma industry.
The officials declined to say how large a share of the Canadian market would be open to USA dairy products. "The American farmer is good at what they do", said Newby.
"It has been shocking and disappointing and upsetting".
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