Canada reaches a trade deal with US & Mexico under new name

The women commemorated the victims of gender and sexual-based violence by remembering the Ecole Polytechnique massacre in Montreal

The women commemorated the victims of gender and sexual-based violence by remembering the Ecole Polytechnique massacre in Montreal

The U.S. Trade Representative's office told industry stakeholders over the weekend that Washington was on track to reach a deal with Ottawa by the end of Sunday, said people briefed on the matter.

The agreement will increase US access to Canada's dairy market beyond Trans-Pacific Partnership levels, a senior Trump administration official said.

But it keeps a NAFTA dispute-resolution process that the US wanted to jettison and offers Canada protection if Trump goes ahead with plans to impose tariffs on cars, trucks and auto parts imported into the United States.

The Trump administration officially notified Congress of the U.S. -Mexico trade agreement on August 31.

The government "is still having constructive discussions" with US counterparts, and "some" progress has been made, said one insider, speaking on condition of anonymity given the sensitive nature of the talks.

Negotiators reached a consensus before the deadline of midnight on Sunday, meaning the new agreement can be submitted to USA congress the required 60 days before being signed.

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The official also said it exempts tariffs on 2.6 million cars and on diary it preserves supply management in Canada, the AP reported. United States officials have been keeping Mr Trump in the loop on every step since last Friday, two people said.

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 U.S. tariffs.

Officials say the agreement preserves a NAFTA dispute-resolution process that the US wanted to jettison.

Mexico and the USA have already agreed new terms, and only recently it looked as if Canada could be excluded in a final agreement.

A series of calls the Prime Minister made to the chief executive officers of Canada's five largest banks leading into the weekend marked the culmination of months of back-channel communications between banks and government officials. Talks to revamp NAFTA began in August a year ago.

A delay would mean current Mexican President Enrique Pena Nieto wouldn't be able to sign the deal before he leaves office, placing the fate of the pact in the hands of his successor, Andres Manuel Lopez Obrador.

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In a big victory for his agenda to shake-up an era of global free trade that many associate with the signing of NAFTA in 1994, President Donald Trump coerced Canada and Mexico to accept more restrictive commerce with their main export partner. "So it's either going to be the text goes in with Mexico and the USA, or the text goes in with all three countries".

Canada also appears ready to accept assurances that steel and aluminum tariffs that Trump has imposed will be lifted, though it remains unclear whether the taxes would be replaced by quotas that limit metal imports. Trump wanted Canada to open its dairy market to U.S. farmers, and Canada wanted to preserve a mechanism for resolving disputes.

"It would be a monumental mistake to do this without Canada", US Senator Ron Wyden of OR, the top Democrat on the Senate committee that oversees trade, said Friday, before the text was delivered.

The almost 25-year-old NAFTA deal governs more than one-trillion USA dollars in annual trade between the three countries.

The political stakes are high on both sides of the US-Canadian border: Trump needs to look strong heading into the November midterm elections, where his Republican Party is fighting to keep control of Congress, while Trudeau does not want to be seen as caving before next year's general election.

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