Donald Trumps heralds 'new dawn' with trade deal

Donald Trump previously said he wanted to go ahead with a revamped NAFTA with or without Canada

JUSTIN TANG VIA APDonald Trump previously said he wanted to go ahead with a revamped NAFTA with or without Canada

USA farm groups said their first goal in negotiations for the new NAFTA was to maintain duty-free access for farm exports to Canada and Mexico, followed by such issues as Canada's supply management system for dairy, poultry, and eggs. "Brazil is another one", Trump said, adding that "they charge us whatever they want". "We weren't at the table or maybe the deal would have been a little different".

USMCA got mixed reviews as pundits and politicians grappled with the latest iteration of what was once called NAFTA.

Those remarks set the stage for a bitter struggle over trade, with Trump threatening to drop Canada from the regional trade pact altogether if it didn't yield to key U.S. demands.

Canada's government had faced strong opposition to elements of the revised pact from the country's dairy farmers. That's the part the scares me. Good relationship. They want to make a deal now because they don't want me to do what I'm going to do, with I have to.

"Without tariffs we wouldn't be talking about a deal", Mr Trump said. While the Liberals touted their trade negotiations as successful, others speculated about the cost they paid to draw a deal.

"We've been sacrificed", he said in an interview. "The market has continued to erode". Farmers have developed export markets in Canada and Mexico.

Both industries will see the domestic market reduced.

"We had to make compromises, and some were more hard than others", he said. "The prime minister had made it clear that he would support dairy, particularly within supply management, but particularly dairy".

He was also concerned about the government's decision to get rid of Class 7 pricing on some dairy ingredients.

The president has adopted an "America First" policy and launched a trade war against China, as well as imposed tariffs on steel and aluminium imports from Mexico and Canada. He sent his "highest regards" to Trudeau, and said that the new deal has created a great partnership with Mexico and Canada.

"This has happened, despite assurances that our government would not sign a bad deal for Canadians", Lampron said in a statement. "There is no reason to change U.S. economic forecasts as a result of the deal".

It replaces the 24-year-old North American Free Trade Agreement (Nafta), which Trump has lambasted as a job-wrecking disaster that has hollowed out the nation's industrialized base.

Ontario Agriculture Minister Ernie Hardeman said in a statement the new trade deal will hurt dairy farmers in Ontario.

Trump acknowledged he and the prime minister have been at odds in recent weeks - but said it was all because of NAFTA, and is over now that the two countries have agreed to a new continental trade pact, christened the U.S. -Mexico-Canada Agreement.

And US equity futures are holding notable gains...

The deal could help ease trade tensions, which the International Monetary Fund warned on Monday have reached a turning point from rhetoric into actual trade barriers.

There's also a new rule that a significant percentage of the work done on the vehicle must be completed by workers earning at least $16 an hour, or about three times what the typical Mexican autoworker now makes.

"The problem for us is that there is only so much shelf space", Prodan said.

Canada agreed to provide US dairy farmers access to about 3.5 percent of its approximately $16 billion annual domestic dairy market, Canadian sources said, adding that the Canadian government is prepared to offer compensation to dairy farmers hurt by the deal.

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