Trudeau agrees to new NAFTA deal
The agreement, renamed USMCA, was reached an hour before the midnight deadline.
Written by Sammy Abdo
The United States-Mexico-Canada Agreement replaces the 24-year-old NAFTA deal. After Mexico and the U.S. agreed to a deal last month without Canada, there was pressure around Prime Minister Justin Trudeau to secure an agreement. U.S. President Donald Trump threatened to move forward with a new NAFTA agreement without Canada.
A major win for Canada was the protection of tariffs from exporting cars, trucks and auto parts into the U.S. The tariff would have been 20 to 25 per cent on auto parts and cars. What is still a point of contention though was national security tariffs, especially when it came to steel and aluminum. There was much discussion over the summer after Trump announced Canada would be taxed on steel and aluminum exports. Though Canadian officials hope at some point the tariffs will be lifted, the USMCA was agreed to with this tariff included.