The leaders of the United States of America (USA) and Canada praised the new trade agreement that was reached at the last minute before the American deadline, which will replace the 24-year-old NAFTA agreement after the earlier American deal with Mexico.
US President Donald Trump hailed the new US-Mexico-Canada Agreement (USMCA), reached on Sunday after a year of intense and sometimes tense negotiations, as the "most important agreement" for his country, while Canadian Prime Minister Justin Trudeau said it was a deal that will be "completely beneficial to our economy, to Canadian families and to the middle class."
World media have analyzed the changes brought by the new agreement in relation to NAFTA, but also warn that its implementation depends on the US Congress, which could be controlled by the Democrats after the elections next month, who could demand certain changes.
Agreement after impasse
The agreement with Canada and Mexico, the US's two largest trading partners, fulfills President Trump's campaign pledge to renegotiate the NAFTA agreement and avoids his threat to cut Canada out of the deal if talks fail, CNN reported, adding: "Trump administration officials welcomed deal as a big win for all concerned. But some experts have questioned whether the changes to the NAFTA agreement are worth the fear of Trump's threats when it comes to relations with Canada and balancing on the brink of conflict during negotiations."
CNN also specifies that the Trump administration plans to send the new agreement to Congress to begin a 60-day period, which is a necessary condition for Trump to sign it, and Congress can propose changes during that period.
"The Trump administration is working to sign a new trade agreement before Mexican President Enrique Peña Nieto leaves office on December 1. To meet that deadline, the text of the agreement should be submitted to Congress by October."
Agreement on a "new, modernized trade agreement"
Britain's Guardian newspaper reports claims from Canadian sources that the deal will preserve the trade dispute settlement mechanism that the Canadian side fought for to protect the timber industry and other sectors from US anti-dumping measures.
"But this comes at a price. Canada has agreed to provide American farmers with access to about 3,5 percent of the annual domestic milk market of about $16 billion, the sources said, adding that the Canadian government is willing to offer compensation to affected dairy farmers. agreement."
The Guardian specifies that the accompanying letter also states that Canada has agreed to a quota of 2,6 million vehicles exported to the USA in the event that the American Donald imposes tariffs on cars of 25 percent based on national security.
"However, the agreement failed to resolve US tariffs on Canadian iron, steel and aluminum exports, Canadian sources said."
Agreement to save the "Nafta" agreement
The New York Times reports that the US and Canada reached a last-minute deal to save the North American Free Trade Agreement, overcoming deep divisions and allowing the 25-year-old trilateral agreement to remain largely intact.
"After more than a year of tense talks and strained relations between President Trump and Canadian Prime Minister Trudeau, negotiators from both sides reached an agreement shortly before midnight, the deadline set by the White House," explains the New York Times and assesses that the agreement represents a victory for the president Trump, who has been ridiculing the Nafta agreement for years.
"A revised Nafta deal that includes Canada has a much better chance of being ratified by Congress, but its fate remains uncertain. Democrats could take control of the House or Senate in November's midterm elections and try to call for changes to the deal."
"The key test for a new Nafta deal, or any new trade deal, is whether it is enforceable, especially with respect to promises to protect labor rights and the environment," said Sen. Ron Wyden of Oregon, the top Democrat on the Senate Finance Committee. .
Ending suspense
The monetary systems of Washington's partners recovered after Canada's decision to sign an agreement with the US and Mexico on the renewal of the Nafta agreement, the Financial Times points out and explains that it is an agreement that ended several months of uncertainty that affected the economies of all three countries since Trump took office.
This newspaper also states that Trump welcomed the agreement in a couple of tweets on Monday.
"It's a big deal for all three countries, it addresses many of the flaws and mistakes in NAFTA, it greatly opens up markets for our farmers and producers, it lowers trade barriers for the U.S. and it will bring all three nations into competition with the rest of the world," he said.
"Full cooperation under the Nafta agreement, which includes Canada and Mexico, completes a series of efforts by the Trump administration to calm trade relations with traditional US strategic allies, and then increase trade tensions with China... The fact that Canada has joined the US business with Mexico improves the chances for the adoption of the agreement in the US Congress, although this does not guarantee its passage," writes the Financial Times.
Why couldn't Trump destroy Nafta?
Bloomberg writes about why it was so important for the US and Canada to reach an agreement on a renewed North American Free Trade Agreement.
"Most discussions of trade tend to focus on China, which has a $337 billion trade surplus with the United States and has prompted President Trump to impose tariffs on $200 billion worth of Chinese goods. Yet China is the largest trading partner for only five countries. Meanwhile, Canada is unexpectedly the largest export market for 36 countries; in fact, in 2017, Canada bought $340,7 billion worth of goods and services from the United States, twice as much as China." .
The author of the text wonders what happened to Colorado, Oklahoma, Pennsylvania, Virginia, and when did Canada become such an important part of the national economy? What does Virginia sell in Canada? How much did Nafta have to do with it?
"Trade with Canada is responsible for about 281.000 jobs in Virginia. About 200 Canadian companies have offices or factories in Virginia; the people they employ — and the things they create — have ties to the state, even if they don't show up in trade statistics.
Because Nafta largely eliminated tariffs among the three countries, Volvo could consolidate its North American truck production in Virginia, where the trucks could easily be exported to Canada... Nafta made it easier for Virginia paper and wood product manufacturers to are competing with one of Canada's most important industries: lumber. The same is true for other industries such as aluminum, steel alloys and heating and cooling equipment."
A few things to know about the new oil deal
According to The Wall Street Journal, the Nafta agreement is a turning point for President Trump, who in the 2016 election promised to renegotiate or abandon it.
"The new deal, which must be ratified by Congress, likely won't go into effect until next year at the earliest, and Trump faces an uphill battle to win support for Nafta if Democrats take over the House or Senate in November," the WSJ writes.
The paper also reveals that the provisions of the agreement, among other things, refer to rules about cars, labor standards, exchange rates, dispute resolution and a new name.
"You want to import a car duty-free from another Nafta country? It will be more difficult if the new agreement is passed, compared to the existing one from 1994. Vehicles should have 75 percent of parts from North America, compared to the current 62,5 percent. The move is a win for unions and auto workers, but a headache for global auto suppliers."
When it comes to labor standards, the WSJ finds that the Trump administration, like its unusual trade allies among Democrats and US unions, is particularly proud of a set of higher labor standards that, if implemented, would lead to stronger unions in Mexico, and perhaps and higher salaries.
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