Canada wins trade deal!!!!

1. Autos

Nafta talks were conducted under threat of a steep escalation of tension: imposition of U.S. auto tariffs. The deal struck Sunday offers a measure of protection for both Canada and Mexico, ensuring each country won’t be affected by any auto tariffs unless exports top 2.6 million units annually.

For each, that represents their current exports plus growth of at least 40 percent -- enough to mean that if the tariffs are leveled against the rest of the world, they likely wouldn’t hit Canada and Mexico for a couple of years. There’s no guarantee that the Trump administration will impose the tariffs at all, or keep them in place that long.

As expected, the deal calls for cars to have 75 percent of their content originate in the U.S. and Mexico, up from the current 62.5 percent, and for 40 percent of a car to come from workers whose pay averages more than $16 per hour. The rules are a central part of the U.S. strategy to rebalance manufacturing to benefit American workers.

2. Other Tariffs

The deal doesn’t resolve the dispute over U.S. tariffs on steel and aluminum imports from Canada and Mexico -- or the retaliatory tariffs that each country placed on them. But going forward, it did give a guarantee that no tariff applied under the same U.S. law could be imposed against Canada or Mexico for at least 60 days. During that period, “the United States and Canada shall seek to negotiate an appropriate outcome based on industry dynamics and historical trading patterns,” the countries agreed.

3. Dispute Panels

Nafta had three kinds of dispute settlement systems. The new deal will see two remain basically unchanged, but renamed, according to senior White House officials. State-to-state dispute settlement -- formerly in Chapter 20 -- is being kept. It has many critics, particularly in the labor community, because panels often get blocked and disputes linger for years.

The old Nafta’s so-called Chapter 19 dispute-settlement mechanism -- which hears bi-national anti-dumping and countervailing duties cases -- remains untouched in the new agreement, the officials said. Canada dug in to save those.

Investor-state dispute settlement, formerly in Chapter 11, will be phased out between the U.S. and Canada but remain in place for certain key sectors -- such as oil and gas, infrastructure and telecommunications -- between the U.S. and Mexico, according to the White House officials.

4. Dairy

As part of the deal, the U.S. is getting expanded access to Canada’s protected dairy market, long a thorn in the side of trade talks. Canada will eliminate its so-called Class 7 milk pricing system, a senior U.S. administration official told reporters. New measures will prevent Canada’s system from spilling outside its borders, while market access for the U.S. will exceed Canada’s concessions in Trans-Pacific Partnership talks, the U.S. official said. Canada gave up 3.3 percent of its market in those TPP talks, but the U.S. has since quit the deal.

5. No Sunset

The U.S. had demanded a sunset clause that would kill Nafta after five years unless the countries agreed to extend it. Few ideas upset the Canadians and Mexicans more than that. In the end, the countries agreed to a 16-year term for the deal, with a review to identify and fix problems and a chance of a deal extension after six years. U.S. Trade Representative Robert Lighthizer said in August that the review mechanism is designed to solve problems and prevent them from festering, rather than to terminate the deal.

6. Intellectual Property

The office of the U.S. Trade Representative boasted that the deal would provide “new protections for U.S. intellectual property,” which the U.S. had been seeking. Copyright will, for instance, extend 70 years after an author’s death.

7. Higher Thresholds

Both Canada and Mexico agreed to raise the thresholds at which they apply duties to cross-border purchase, another key U.S. demand. Mexico raised its so-called de minimis level to $100 from $50. Canada raised its to C$150 ($117) for duties, from C$20 earlier, and C$40 for sales taxes.

Click to expand...

Canada is back in a revamped North American free trade deal with the United States and Mexico after weeks of bitter, high-pressure negotiations that brushed up against a midnight deadline.

In a joint statement, U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said the late Sunday agreement “will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”

The new deal, reached just before the midnight deadline imposed by the U.S., will be called the United States-Mexico-Canada Agreement, or USMCA. It replaces the 24-year-old North American Free Trade Agreement, of NAFTA, which President Donald Trump had called a job-killing disaster.

Click to expand...

chuckiechan said:

It's been so long since the country has had aggressive leadership that is aimed at citizens and not multinationals and illegal aliens, people don't know success when they see it and are too jaded to applaud.

Click to expand...

jaeger19 said:

Yeah.. maybe because 1. We have heard these promises before when it came to NAFTA

2. These promise are being made by a President who can't help lying just about every chance he gets.

Click to expand...

chuckiechan said:

NAFTA was Bill Clinton's entry into multi nationalism and it's been down hill ever since.

Trump is trying to reverse the trend.

Click to expand...

Atheist 2020 said:

The USMCA is a win for Canada. Reading the news in Canada, it opens more free trade with the United States. Trump can say about diary being opened to Canada, but, Canada also has a free trade with Asia with the free trade America withdrew from so the plus side with Canada is more limited.

Click to expand...

Barnacle said:

You gonna find out in a few days, but don't tell Canada yet ... (grin)

"The U.S. now has veto authority over any trade deal made by Canada and/or Mexico with third parties. "

Click to expand...

Article 32.10: Non-Market Country FTA

1. At least 3 months prior to commencing negotiations, a Party shall inform the other Parties of its intention to commence free trade agreement negotiations with a non-market country. For purposes of this Article, a non-market country is a country that on the date of signature of this agreement at least one Party has determined to be a non-market economy for purposes of its trade remedy laws and is a country with which no Party has a free trade agreement.

2. Upon request, the Party shall provide as much information as possible regarding the objectives for those negotiations.

3. As early as possible, and no later than 30 days before the date of signature, that Party shall provide the other Parties with an opportunity to review the full text of the agreement, including any annexes and side instruments, in order for the Parties to be able to review the agreement and assess its potential impact on this Agreement. If the Party involved requests that the text be treated as confidential, the other Parties shall maintain the confidentiality of the text.

4. Entry by any Party into a free trade agreement with a non-market country, shall allow the other Parties to terminate this Agreement on six-month notice and replace this Agreement with an agreement as between them (bilateral agreement).

5. The bilateral agreement shall be comprised of all the provisions of this Agreement, except those provisions the relevant Parties decide are not applicable as between them.

6. The relevant Parties shall utilize the six-month notice period to review the Agreement and determine whether any amendments should be made in order to ensure the proper operation of the bilateral agreement.

7. The bilateral agreement enter into force 60 days after the date on which the parties to the bilateral agreement have notified each other that they have completed their respective applicable legal procedures.

https://ustr.gov/sites/default/file...SMCA/32 Exceptions and General Provisions.pdf

Click to expand...

Mycroft said:

Ahhh...what the hell...why wait?




Sorry China...you just got shut out.

Click to expand...

Barnacle said:

Dang, Mycroft, why did you bust their bubble while they were still "celebrating" Canada's win?!? :lol:

Click to expand...

chuckiechan said:

NAFTA was Bill Clinton's entry into multi nationalism and it's been down hill ever since.

Trump is trying to reverse the trend.

Click to expand...

Sabre said:

Here are highlights of what they agreed to:



https://www.bloomberg.com/news/arti...crisis-averted-highlights-of-a-new-nafta-deal

Click to expand...

MTAtech said:

The idea that it is bad for the U.S. to buy products and services from other countries, while other countries buy U.S. products and services (e.g. multi-nationalism), displays profound ignorance. Prior to the Great Depression, there was international trade. One of the worsening causes of the Great Depression was the tariffs both sides imposed, like the Smoot–Hawley Tariff.

Now, anyone who looks at the actual effects of international trade knows that trade isn’t just about selling stuff, it’s about getting better, cheaper stuff both to consume and to use as inputs in production. If we encourage everything to be made here, then our products will contain more expensive inputs that will result in more expensive outputs, that will not sell on the world market.

Click to expand...

chuckiechan said:

NAFTA was Bill Clinton's entry into multi nationalism and it's been down hill ever since.

Trump is trying to reverse the trend.

Click to expand...

Barnacle said:

Nobody is talking about making everything here. Educate yourself on what a trade agreement means.

Click to expand...

Mycroft said:

Ahhh...what the hell...why wait?




Sorry China...you just got shut out.

Click to expand...

MTAtech said:

Chuck was knocking multi-nationalism (see post #14) that's international trade. Educate yourself.

Click to expand...

Atheist 2020 said:

The USMCA is a win for Canada. Reading the news in Canada, it opens more free trade with the United States. Trump can say about diary being opened to Canada, but, Canada also has a free trade with Asia with the free trade America withdrew from so the plus side with Canada is more limited.

Click to expand...

Barnacle said:

You don't even know what you're talking about ... "If we encourage everything to be made here, then our products will contain more expensive inputs that will result in more expensive outputs, that will not sell on the world market."

Click to expand...

Helix said:

i hope that we won the stupid milk war. winning! milk!

Click to expand...