U.S. And Canada Reach Deal To Replace NAFTA

The women commemorated the victims of gender and sexual-based violence by remembering the Ecole Polytechnique massacre in Montreal

The U.S. and Canada reached the basis of a free trade deal Sunday night, a senior Canadian government official said.

U.S. -Canada talks bogged down earlier this month, and most trade analysts expected the September 30 deadline to come and go without Canada being reinstated.

Peter Navarro, an adviser to Trump on trade, told Fox News: "Everybody is negotiating in good faith right now as we speak".

Federal cabinet ministers were summoned to a late Sunday meeting at the Prime Minister's Office near Parliament Hill, while the White House convened its own late-night conference call just an hour before the midnight deadline.

The two countries are also working on an agreement that would shield Canada if Trump goes ahead with his threat to tax imported cars, truck and auto parts. Trump had campaigned on ripping up the trade pact, calling it "the worst deal maybe ever signed". He blames the treaty for the loss of American manufacturing jobs and has repeatedly threatened to abandon the trade past signed in 1994, during the Clinton administration.

The achievement of a trilateral trade deal makes it more likely that the USMCA will gain approval in Congress, which gets to scrutinize the pact once the leaders of all three countries have signed it by the end of November.

Among other things, the negotiators battled over Canada's high dairy tariffs.

A source told Reuters that Mr Trump had approved the deal.

A revised Nafta that includes Canada has a far greater chance of being ratified by Congress but its fate is still somewhat uncertain.

After months of sputtering talks, momentum picked up this weekend as Trudeau inserted himself and made clear that he wanted to get something done.

Canada fought hard to retain Chapter 19, a holdover from NAFTA that USA trade ambassador Robert Lighthizer fought tooth and nail to eliminate.

No substantial changes appear to have been made to the chapter 19 trade dispute settlement mechanism, nor the state-to-state dispute settlement.

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"We celebrate a trilateral deal".

Canada and Mexico each agreed to a quota of 2.6 million passenger vehicles exported to the United States in the event that Trump imposes 25 percent global autos tariffs on national security grounds.

According to multiple USA media outlets including the Washington Post. the new deal is to include substantial changes to rules governing the auto industry.

The US Chamber of Commerce has said it would be "unacceptable to sideline Canada, our largest export market in the world".

Under the current system, USA imports exceeding quota levels are subject to excessively high tariffs, such as 245 percent for cheese and 298 percent for butter.

Canada and the United Stares are also looking for a compromise on the issue of USA tariffs.

Even Trudeau has been pulled into the fray: on what's usually a personal day for the prime minister, his itinerary said he'd be spending Sunday in "private meetings" and he was seen entering his office early Sunday evening.

One source briefed on the talks said negotiators were looking to imitate the provisions of the bilateral Mexico-U.S. deal on NAFTA.

U.S. farmers said those schedules had effectively pushed them out of the Canadian dairy market.

The flags of Canada, Mexico and the US are seen on a lectern before a joint news conference on the closing of the seventh round of NAFTA talks in Mexico City, Mexico, March 5, 2018.

Despite the fact that Ottawa had long pushed back hard against allowing the deal to be periodically revisited, officials in the USA briefing said the new language includes a provision that will indeed see the deal reviewed every six years.

Though, one of the senior USA administration officials who briefed reporters on background Sunday night described Canada's concessions on dairy as "a big win" for American farmers.

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