- Aiding farmers by curbing Canada's high tariffs and low quotas on USA dairy products.
Canada was left out when the US and Mexico reached an agreement last month to revamp the North American Free Trade Agreement. The Trump administration set a September 30 deadline for Canada to join the agreement, or tariffs would be placed on vehicles exported to the U.S.
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". Fortunately, many programs funded by the farm bill, including crop insurance, still have secure funding until the end of this year. If approved by all three countries it will replace the 24-year-old North American Free Trade Agreement.
"The agricultural community is counting on our elected leaders to ensure that a safety net remains in place during these uncertain times". While they haven't said when exactly it's happening, the deal is definitely coming soon.
The war all began shortly after Donald Trump imposed tariffs on Canada and spoke out against our Prime Minister.
The official says the agreement preserves a NAFTA dispute-resolution process that the us wanted to jettison.
Negotiators from both sides spent two days talking by phone as they tried to settle a range of hard issues such as access to Canada's dairy market and US tariffs.
And he's cheering the fact it will give American farmers and dairy producers greater access to markets in Canada and Mexico, protect auto manufacturing jobs and encourage innovation on US soil.
Eric Miller, an adviser on trade negotiations and president of the Rideau Potomac Strategy Group, told iPolitics the clause in the new trade deal "makes you choose between the United States and China".
New rules are created to improve United States auto workers' competitiveness, with 40 per cent of each vehicle required to have been made by people earning at least $16 an hour.
Brian Dicken, the VP for Advocacy and Public Policy with the Toledo Regional Chamber of Commerce says, "Given a level playing field (US auto workers) can compete with anybody on producing products we want and need".
The trade deal with Canada follows an agreement last month between the US and Mexico, which eliminated some tariffs on goods traded between the two countries.
The US Congress is required go through a 60-day review of the draft agreement, which could potentially allow for NAFTA signing around December 1.
But it is indeed a new kind of agreement, not just NAFTA 2.0, according to Ohio State University Economist Ned Hill.