WASHINGTON D.C. — President Donald Trump trade announced that a deal has been reached before its midnight Sunday deadline on what will be now known as the U.S.-Mexico-Canada Agreement, or USMCA.
The Trump administration’s new trade deal with Canada and Mexico leaves much of the old North American Free Trade Agreement intact.
Congratulations to Mexico and Canada!
— Donald J. Trump (@realDonaldTrump) 1 oktober 2018
The U.S. won expanded access to Canadian markets for U.S. dairy producers. Canada won a key concession from U.S. negotiators that preserved a dispute resolution process.
The updated agreement also includes key provisions governing the auto industry that will encourage more U.S. car production while protecting Canadian and Mexican companies from President Donald Trump’s threats of wider U.S. tariffs.
Here’s a quick look at key provisions:
- It will require 75 percent of auto components to be built in North America, up from 62.5 percent.
- Forty to 45 percent of auto components will have to be made by laborers making at least $16 an hour.
- In a concession to Mexican and Canadian business, the deal largely exempts passenger vehicles, pickup trucks and auto parts from possible Trump administration tariffs.
- U.S. farmers are getting slightly more access to Canadian dairy markets.
A good day for Canada & our closest trading partners. More tomorrow… https://t.co/qOowhvYW2B
— Justin Trudeau (@JustinTrudeau) 1 oktober 2018